The Port of Newcastle has ruled itself out of contention to become the state's second cruise ship terminal.
The state government announced on Friday that a panel of cruise and tourism industry experts had been established to identify the preferred location for a potential new cruise terminal in NSW.
It said the establishment of a second terminal would allow the state to maintain and grow its market share of Australia's multi-billion dollar cruise industry well into the future.
Newcastle's proximity to the Hunter's vineyards has made it a popular stop off for cruise ships travelling along the east coast in recent years.
But Port of Newcastle chief executive Craig Carmody said the port had no ambitions to expand its current cruise ship activities.
Port of Newcastle is one of the largest bulk ports in Australia, handling over 25 different cargoes," he said.
"Our current focus is diversifying trade across clean energy, containers, and passenger vehicle imports, which would have a major economic benefit and stimulate job growth throughout our region."
Mr Carmody said a cruise passenger terminal would be prohibitive to achieving these outcomes. In particular there were safety and security concerns associated with bringing members of the public through operational port areas.
"While we continue to assist in the limited seasonal cruise movements Port of Newcastle receives, we would not seek to expand on these operations by becoming a home port, which would require a cruise ship terminal," he said.
The government said a new cruise terminal would provide greater capacity to the cruise industry, which contributed $4.4 billion to the NSW economy in 2023-24 and created more than 13,700 jobs.
The Cruising Industry Advisory Panel has been convened by NSW Transport Minister Jo Haylen and will be chaired by Port Authority chief executive Phil Holliday and supported by industry experts.
While Sydney cruise terminals have not reached capacity for bookings yet, the panel will identify options for a future berthing facility to support the long-term growth of the cruise industry across the state.
"The cruise industry in NSW is making a massive contribution to our economy, but it needs certainty so we can all get the benefits from its long-term growth," NSW Transport Minister Jo Haylen said.
"NSW's next permanent cruise terminal will be a massive new piece of infrastructure and we have to get it right. That's why we've assembled the best people to find the best location, so we can grow our cruise industry long into the future."
The Panel will also investigate options for increased capacity at the Overseas Passenger Terminal, ensuring the cruise industry remains well supported for growth, as plans progress to investigate options for a potential third cruise terminal.
This work follows the government's announcement that Shore Power at the White Bay Cruise Terminal will be delivered by the end of 2026, so cruise ships can plug into power instead of running their engines while in port.
"It's fantastic to see the State Government and industry coming together to identify a third cruise terminal, to attract more visitors and boost tourism across NSW. We look forward to working with the Port Authority to deliver a more certain future for the cruise industry and all Australians who love to cruise," Tourism and Transport Forum chief executive Margy Osmond said.
"Increasing capacity will be essential to cater for the growing interest in cruising and support a range of jobs linked to cruise tourism, spanning restaurants, hotels, retailers, travel agents and more."
