Sydney Harbour cruise terminal must be built, experts say, as NSW faces threats from interstate

A 14.5 per cent drop in NSW’S economic share from cruising should ring alarm bells and force the NSW Government to hasten its selection of a major new cruise terminal in Sydney Harbour.

Queen Elizabeth (foreground) follows larger sister ship Queen Mary 2 into Sydney Harbour as Mary makes her way to dock at Garden Island while Elizabeth is on her way to Overseas Passenger Terminal at Circular Quay in 2011.

A 14.5 per cent drop in NSW’S economic share from cruising should ring alarm bells and force the NSW Government to hasten its selection of a major new cruise terminal in Sydney Harbour, experts say.

And despite Transport Minister Jo Haylen sticking a fork into Garden Island as a potential terminal location last month, business figures say cruises coexisting with the Navy there can be done – because it has been before.

Figures with knowledge of the industry suggested other potential locations which could be worked to include a new terminal include Athol Bay, where ships already berth while waiting for access to the Overseas Passenger Terminal, and Woolloomooloo Bay Finger Wharf.

The NSW port authority is currently reviewing future options to boost capacity for cruise ships but remains tight-lipped on where.

Driving concerns is a major industry report into cruising in Australia last month, which stated Queensland’s share of economic output increased by 10.1 percentage points in 2022–23, while the share for NSW – despite still having the largest slice – had decreased by 14.5 percentage points.

The Royal Princess cruise ship arrives into Sydney Harbour. Picture: James D. Morgan/Getty Images for Princess Cruises

It comes following the opening of a new cruise terminal at the mouth of the Brisbane River – with the muddy brown waterway now posing a legitimate threat to the sparkling Sydney Harbour.

The Port Authority of NSW’s review is understood to be canvassing options outside of Sydney, such as Port Kembla in the Illawarra, with the authority telling the Telegraph: “Sydney already has two cruise terminals, we are looking to support additional growth in the cruise market”.

“(The) Port Authority of New South Wales is exploring alternative ways to increase cruise terminal capacity to ensure that NSW retains its share of Australia’s $5 billion cruise industry,” a spokesman said.

“At present, we are working closely with industry and regional centres to make sure the right locations are considered. Once this assessment is completed, Port Authority will report back to NSW Government on viable options in due course.”

Queen Mary 2 docked at Garden Island naval base in Sydney. Picture: James Morgan

It comes after Transport Minister Jo Haylen last month ruled out Garden Island from the port authority’s search for a new cruising terminal, stating “We know that Garden Island has been on the table for a long time but the fact is, it is not practical … the Navy is not going anywhere.”

Business Sydney’s Paul Nicolaou said, however, tourists want to berth at the iconic Sydney Harbour – not Port Kembla – and that Garden Island remained a viable option for limited cruise ship dockings a year.

“With international tourism still lagging below pre-pandemic levels, Sydney needs all the international visitors it can attract and that includes the seafaring tourists who arrive in our city on board cruise ships,” he said.

“While it might not be popular with the Navy, the obvious place for the overflow of larger cruise ships to berth at the peak of the summer cruise season is at Garden Island.”

P&O Cruise Entertainers Bryan Browne and Zoe Hannah May at Sydney Harbour. Picture: Rohan Kelly

Mr Nicolaou said shared use of Garden Island with the Navy had worked before and still prevented a viable option.

“We know it can work for three to four ship calls per season because it has happened a number of times previously involving Cunard flagship Queen Mary 2,” he said.

“Shared use of Garden Island delivers the cruising experience that domestic and international travellers want – sailing in and out of the world’s most beautiful harbour. Sydney is one of only a few ports around the world where ships can berth on the city’s doorstep. We should make the most of that opportunity.”

“Port Kembla could accommodate a cruise terminal but with all due respect it would not come near the Sydney Harbour experience. Nor does cruising from Brisbane, even with its new cruise terminal at the mouth of the Brisbane River.

“We have to make sure that by default Sydney doesn’t lose any further cruise industry share to Brisbane in terms of economic activity.”

Joel Katz, managing director of Cruise Lines International Association (CLIA) Australasia, said a new Sydney Harbour port to catch the overflow of the Overseas Passenger Terminal and White Bay remained crucial, warning that without proper planning “NSW will increasingly lose market share to other market ports – we’re already seeing ships deployed to Melbourne, Adelaide and Brisbane”.

“The issue of berthing capacity is an important one for the industry and we’re encouraged the NSW Government is looking to address this,” he said.

“Sydney Harbor is obviously a key attraction.”

It comes as NSW weighs up potentially its most lucrative summer cruising season ever, following a year where cruising contributed a total economic impact of $2.75 billion to NSW.

Zoe Hanna May, a performer and singer on P & O Cruises Australia, will be one of those doing her part to entertain thousands of cruise ship passengers this summer.

“I really enjoy performing for thousands of guests on P & O cruise ships. Not only do I get to do what I love, but I also get the chance to see more of Australia which is a pretty good perk,” she said.

Originally published as Sydney Harbour cruise terminal must be built, experts say, as NSW faces threats from interstate