It's a hole, a strategic hole, a $3.2 million strategic hole that will help make the city waterfront a more fun place to be.

And it's been carved through the railway embankment at the city end of the Matapihi rail bridge near the Harbourside restaurant.

The hole is an underpass beneath the railway line at the southern end of The Strand Extension – and it is one step closer to Tauranga City Council's construction of a waterfront boardwalk into the city centre.

'The underpass and boardwalk form part of several exciting projects underway to upgrade our city centre waterfront,” says Tauranga City Council's city development general manager Gareth Wallis.

'The upgrades will create more fun things for people to do, like waka ama, a picnic, exploring the new playground, a harbour-side concert, or a stroll along the boardwalk.”

An artist's impression of the completed project. Photo: Supplied.

The railway embankment excavation wasn't without its challenges. Teams installing the underpass had a tight deadline to align with KiwiRail traffic and avoid disrupting rail services. There was just a three-day window of opportunity to do the job.

Teams spent one day digging the cutting through the railway line. The second day the 85-tonne culvert was lifted into place. Backfilling completed that part of the project, then there was the handover back to KiwiRail to reinstate the railway lines.

The wing walls on either side of the underpass have been installed and now landscaping is underway.

The next part of the project is to construct the new section of boardwalk, which will run along the southern end of The Strand on the harbour-side of the railway line.

An artist's impression of the Tunks Reserve update. Image: Supplied.

When the project is complete, the underpass will link The Strand with an area known as Tunks Reserve at the top of Elizabeth St.

It's a work in progress and is all aimed at providing better access from the city to the waterfront. It's anticipated that by early next year people will be able to walk through the underpass and along the water's edge.

Work is also underway to beautify and improve safety and access at Tunks Reserve.

It will include a new walkway and cycle tunnel to make it easier for cyclists to get up and down the hill from Elizabeth St down to The Strand.

A total of $94.8 million has been allocated to the transformation and development of the city centre waterfront.

Artist's impression showing the steps from Tunks Reserve on Elizabeth Street down to The Strand and underpass will include a cycle runnel. Image: Supplied.