The bridge over the railway line at Huntley Road was officially opened on Saturday morning to complete stage two of the project to provide a southern route around Orange.

Orange City Council has just awarded a tender for $6.6 million to Hamcon Civil to build the next stage.

It will link the new bridge from Elsham Ave, along Blowes Road and Dairy Creek Road through to the Mitchell Highway on the eastern outskirsts of Orange.

"Hamcon have worked on a number of other projects for council, and we're looking forward to them making a start as soon as they can in the coming months," Cr Kidd said.

"The Southern Feeder road is going to make a huge difference to the infrastructure of Orange.

"People [already] have a taste of what's going to happen with the completed section down the hill from Anson Street.

VIDEO: The bridge is open

"As well as making it easier for traffic to get from the highway to the Leewood industrial estate and the health precinct, the new bridge will make it a lot easier for residents of Glenroi to get to sportsgrounds, the hospital and the route to Cadia."

He said planning and preliminary work had also begun on the fourth stage which takes the road west from Anson Street toward Pinnacle Road.

"It's early days with this project and much of the land has already been set aside, but there are smaller steps still to take," he said.

"The latest council meeting gave the go ahead for an agreement for a drainage easement that we'll need to build the road."

The project was funded by federal, state and local government. Member for Calare Andrew Gee and state MLC Sam Farraway took part in the ceremony.

Mr Farraway said the state government had contributed $8 million.

"These upgrades, like the overpass vehicles are now driving over for the first time, provides a more direct route for heavy vehicles travelling from the Mitchell Highway to the southern industrial area, which will benefit mining, agriculture, forestry and manufacturing," he said.

Mr Gee said it was a major transport connection for Orange to which the federal government had contributed $6.45 million.

"Better country roads are very close to the hearts of country people," he said.

"It is an important milestone that will help ease congestion and get our produce and products to market faster and more efficiently, and also make traffic through Orange safer. The construction has already delivered a significant economic shot in the arm to the area."