Federal infrastructure minister Jamie Briggs says work could begin on Adelaide’s billion-dollar Northern Connector project by early next year if agreement can be reached on a toll for heavy vehicles.

The project, a 15km multi-laned road connecting the South Road Superway with the Northern Expressway, would fill a missing link in the freight route from the north to Port Adelaide.

Briggs told ABC 891 radio this morning that he had been in intensive talks with his counterpart in the State Government, Stephen Mullighan, and he had been pushing a heavy vehicle charge as part of the funding mix.

He said if Mullighan accepted the need for a toll, “I understand we could start turning dirt quite early next year”.

However, Mullighan reiterated today that the State Government would not consider a toll, instead pushing for broader “road network charging”.

“The South Australian Government has repeatedly ruled out introducing tolls on South Australian roads, this includes a toll on heavy vehicles. This position remains unchanged,” he said in a statement.

“Our negotiations with the Federal Government on the Northern Connector have been positive and we would hope to come to an agreement soon which will see the project proceed as quickly as possible.

“We are continuing to work with heavy vehicle stakeholders on road network charging – a fairer, more equitable and transparent way of raising revenue for investment in roads than the current state registration and federal fuel excise regimes.”

Transport Minister Stephen Mullighan.

Premier Jay Weatherill has previously said that state-based registration and federal-based fuel-excise charges should be replaced by a “network” charging system for heavy vehicles based on mass, distance and location.

Briggs said he had been in close talks with the State Government.

“We’ve got to come to a funding agreement with the State Government,” he said.

“We’ve been working very hard. Stephen Mullighan and I have spent a lot of time together in the last couple of weeks… We’ve got close but it’s expensive and public budgets or public finances are tight, as we regularly debate on your program. So finding an extra nearly billion dollars between the two of us is proving challenging.

“We’ve been keen for the State Government to look to work also with the private sector and have a heavy vehicle charge as part of the mix. That’s something that we’re still working with the State Government on – on that prospect.”

Briggs said the industry and the State Opposition supported a heavy vehicle charge.

“They (the freight industry) will accept it if it means that you get a more efficient journey and the price you pay is less than the current cost to operate the vehicles start/stop.”

Prime Minister Tony Abbott said during his Adelaide visit this week that the project was the most “immediately prospective” new federal/state infrastructure project in the works, and hinted that an announcement was imminent.

Business SA has welcomed the prospect of the project getting up and running in the near future.

The lobby group said the Northern Connector would create a substantial number of jobs during construction, but would also “enable sustainable jobs growth in the northern suburbs as it opens up adjoining lands for future industrial development”.

“Business SA has long been calling for action on the Northern Connector project which has already been subject to significant due diligence by the State Government and has been assessed by Infrastructure Australia as having a positive cost benefit ratio,” said Business SA policy director Rick Cairney.

“This project is shovel ready and will not only provide welcome relief to South Australia’s struggling civil construction industry, but it will actually create sustainable economic growth through reducing freight costs for key export orientated regions.”