The NSW government has revealed plans to build a third cruise ship terminal in Sydney to ease capacity constraints at the Overseas Passenger Terminal at Circular Quay.

The first step in the NSW government’s plan is a “market engagement process” on two sites at Port Botany.

This means considering and assessing options for a potential terminal at Yarra Bay or Molineux Point near Port Botany.

The cruise industry has been asked to put together a case along with the port authority in a process that is expected to take around three months.

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The cruise industry creates $2.75 billion for the state’s economy each year and they’re expecting almost 1.6 million passengers this cruise season alone.

The additional terminal near Port Botany is the next best option after the federal government ruled out building a third cruise ship hub at Garden Island in Woolloomooloo.

Cruise Lines International Association Australasia has welcomed the announcement which they see as progress towards achieving a solution to Sydney’s current berthing capacity constraints, which are limiting growth in Australia’s cruise industry.

“The NSW Government’s announcement that it is beginning the market planning phase for the development of a third Sydney cruise ship terminal is a positive development that recognises the vital need for new infrastructure to support the cruise industry and the approximately 17,000 jobs it sustains across Australia,” CLIA said in a statement

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Image: Keith Zhu/Unsplash

“Additional berthing capacity is urgently needed in Sydney to ensure Australia’s cruise industry can continue to prosper into the future,” said CLIA Australasia Managing Director Joel Katz said.

“Limits on available berthing space in Australia’s gateway port threaten cruise tourism growth not only in Sydney, but in destinations around Australia, New Zealand and the South Pacific,” he said.