The business world has welcomed news of the A66 upgrade - but warned that it should be completed as quickly as possible.
Work to build a dual carriageway along its entire length is expected to speed up access between the A1 and M6 key arterial routes and bring renewed economic prosperity to the region.
The upgrade could prove a double boost for business following the announcement in June of £263m worth of improvements for the A1.
Dr John Bridge, chairman of One NorthEast, said: "On the back of the A1 upgrade you are talking about significant sums running into the millions being attracted in terms of new business.
"The A66 once the work is complete will provide a huge opportunity for the likes of Teesport with a dual carriageway carrying you right through from the west to the east.
"We will now be putting pressure on the Department of Transport to ensure this is done as soon as possible and to get a much clearer indication of timescales."
Rachel Spence, head of policy at the North-East Chamber of Commerce, said: "We are absolutely delighted as this is something we have been pushing for.
"It gives us a better link to the Scottish ports and Irish markets and will help the flow of traffic with the A66 being a key route for movement of freight in the region.
"We now want to see things moving as quickly as possible."
Steve Rankin, regional director of the CBI in the North-East, said: "This has to be applauded and is extremely important for the whole North-East economy."
Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, said: "This will make a difference. Anyone who wants to get up goods to markets in the west of the country and up to Scotland through the M6 is going to benefit.
"Let's not forget the bigger picture though. We still need other high quality transport links such as a high speed north-south rail service as soon as possible."
The North East Assembly also welcomed today's announcement.
Bob Gibson, Vice-Chair of the North East Assembly and Leader of Stockton Borough Council, said: "The North East Assembly has taken an active and supportive role in making the case for improvement to this vital arterial link in and out of the region.
"The Minister's announcement will undoubtedly bring long-term benefit to the whole of the North East region.
"The quality of the main connections to locations and markets outside the North East is essential to the regeneration of the region, raising economic performance, combating social exclusion and improving its urban and rural areas".
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