Federal minister for urban infrastructure Paul Fletcher said the Smart Freeway project will use technology to create an additional lane by converting the emergency lane from Canning Highway to the Narrows Bridge into a full-time traffic lane.
"The high-tech components of this project are expected to deliver journey time savings of up to 10 minutes for freeway road users travelling from Roe Highway to the city," Fletcher said.
"The Turnbull government is delivering almost $7 billion worth of infrastructure projects in Western Australia and this project is another example of how that funding is boosting the state's economy."
According to Western Australian minister for transport Rita Saffioti, the technology is use has proven successful around the world for managing congestion, improving safety and getting the most out of existing infrastructure.
"This is a state first, with the upgrade the first use of Smart Freeways technology in Perth," Saffioti said.
"Investment in a number of priority projects around the state highlights the McGowan government's commitment to boosting the economy and creating jobs for West Australians."
Steve Irons, federal member for Swan, said the important freeway project formed part of the $2.3 billion WA Infrastructure Package, which is expected to support 6,000 jobs.
"The project from Canning Highway to the Narrows Bridge will allow us to create additional freeway capacity along this critical corridor and will be complemented with ramp signals at Farrington Road, South Street, Leach Highway and Cranford Avenue," Irons said.
"These will balance the flow of traffic onto the freeway and ease stop-start conditions."
Construction on Perth's first Smart Freeway is expected to start in late 2018, with plans to be in operation by early 2020.