The Portsmouth City Council scheme includes a new access road to the Tipner site from the M275 and a new park & ride scheme. Mr Baker said that the scheme would be a huge boost for the area.
The Tipner scheme was one of the schemes given funding approval last year as part of the spending review process. Work can now start on the construction with the project scheduled to complete in April 2014.
The Department for Transport will provide a maximum of £19.5m towards the full scheme cost of £28.19m.