Contractors moved on to the stretch of road between Rosehill Rd and Macandrew Bay earlier this month, and have been busy since laying the foundations and fill for new lanes for cyclists and walkers.
Dunedin City Council contract engineer Chris Hasler said widening the latest section was expected to take until March next year, although better-than-expected progress could see the end date brought forward.
The work would eventually see a 1.2m-wide cycleway on the inland side of the road, which would have two 3m-wide lanes for vehicles, he said.
Between the road and the water would be a 1.2m-wide cycleway and a separate shared 2.4m-wide footpath and cycleway, separated by a small concrete barrier, and a grass berm beside the new seawall, he said.
The $2.65 million project was part of the overall widening of the peninsula's Portobello Rd and Harington Point Rd - costing $36.5 million - which began in 2007 and was due for completion in 2023.
Mr Hasler said the section of work involved one of the longest periods of construction in the project to date, partly because of the need to accommodate access to boat sheds and the Macandrew Bay Boat Club.
Most of the boat sheds would have their access ramps shortened to make room for the new lanes, he said.
However, one shed would instead have extra piles installed in front of it before being moved forward, into the harbour, to make room, he said.
"The owners have been really good towards the change. They have been pretty easy to deal with.
"It improves their access as well to get to their sheds. It's good for everyone really," he said.
About 4m of space was also needed at the Macandrew Bay Boat Club, but negotiations with the owners were continuing, he said.
Funds for the relocations would come from the project's $2.65 million budget, he said.
