The state government has begun planning for a future upgrade of the worst choke point for south coast motorists, the  Princes Highway through Albion Park Rail.

Kiama MP Gareth Ward says $100,000 has been allocated to examine long term future options for improvements to traffic flow in the area.

There has been a push from a number of quarters for a by pass starting at the Oak Flats interchange, and running west of the Albion Park airport to rejoin the highway at Yallah.

Cr Ward says the government has listened to the concerns of local residents about this highly congested section of the highway