LAW firm Dickinson Dees has helped broker the agreement to finance and build the new Tyne Tunnel.

The agreement, which was signed at the end of last year, has enabled the £260m transport project to begin.

Construction work began in October.

The new tunnel – Tyne Tunnel 2 – is being built to help ease congestion at the original Tyne Tunnel, as well as enabling this to be refurbished and improved for the first time since it was constructed 41 years ago.

When it was first built, it was said the Tyne Tunnel could handle 24,000 vehicles a day, however, over time, traffic levels have increased to 38,000 vehicles a day.

Michael Brown, lead partner on the project at Dickinson Dees in Newcastle, said: “We have taken a leading role in the legal aspects of the land issues and land assembly for the project acting for the Tyne and Wear Passenger Transport Authority (TWPTA) throughout.

“The main aspects of our work involved the negotiation of agreements on behalf of TWPTA to secure certain areas of the land in order to build and operate the tunnel.”

Tyne Tunnel 2 is the largest highway infrastructure project in the North-East since the A1 Newcastle Western Bypass opened in 1990.

The project has also been hailed as providing a huge boost for the economy.

Mr Brown said: “The effect the crossing will have on the local economy in terms of greater economic activity along the A19 and better communications, not excluding the development of land and the creation of jobs, will be extremely significant.”

The agreement for the new Tyne crossing was signed by the scheme’s promoter, the TWPTA, and the preferred bidder, the Bouygues-led Consortium.

It is hoped the tunnel will open in 2010, at which point the existing tunnel will be closed for refurbishment and safety works.

Both tunnels are expected to be fully operational by late 2011.

Councillor Dave Wood, chairman of the TWPTA, said: “This agreement is an historic moment for Tyne and Wear.

“The second tunnel is the biggest civil engineering project currently under way in the region and will greatly improve access to new markets and jobs.”