Mr Brownlee said the highway would improve safety, journey times and reliability, and resilience between Wellington Airport and the lower North Island.
Upon its completion in 2020, motorists would be able to enjoy four lanes in each direction all the way from the Terrace Tunnel to north of Otaki.
Today marked a historic day for the Wellington region, New Zealand Transport Agency deputy chairwoman Dame Patsy Reddy said.
"An extraordinary amount of work has gone into this project to get it to the starting line. Planning a 27km motorway might not be as physically demanding as building it, but it's just as labour intensive.
"Generations of Wellingtonians have advocated tirelessly for Transmission Gully, and getting the first spade in the ground is the result of many, many years of dedication and passionate community support."
Transmission Gully is the first state highway in New Zealand to be delivered as a public-private partnership, by the Wellington Gateway Partnership.