Work has started on a £70,000 extension to the Sheepbridge park and share site.
Transport Minister Danny Kennedy cut the first sod on the scheme which will create 38 extra car parking spaces.
As part of the A1 Beech Hill to Cloghogue dualling scheme, a park and share car park comprising 25 spaces was constructed at the Sheepbridge junction, north of Newry.
Since the opening of the new dual carriageway, the site has been very busy and is over-subscribed most days. This has led to vehicles parking around the entrances to the site and along the road verge.
Mr Kennedy said: "I am absolutely delighted we have gained planning approval and secured funding for a proposal to extend the existing facility by 38 spaces.
"This is a good example of my Department's approach to providing a modern, sustainable transportation infrastructure for Northern Ireland."
(CD/JP)
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