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Swansea Channel dredging is set to occur in July, the area's state MP Yasmin Catley says.
Ms Catley, the Swansea MP, said Transport for NSW has called for tenders to engage a contractor for the channel dredging works.
The tender closes on June 1.
Ms Catley said the department's Maritime Infrastructure Delivery Office plans to conduct dredging in July this year and autumn next year.
This procurement process is running alongside an environmental approval process.
"Environmental approvals will be complete by the end of May," Ms Catley said.
The Newcastle Herald reported last December that channel dredging, planned under the previous Coalition government, had been delayed due to endangered shore birds nesting on a sand island in the channel.
The transport department said at the time that dredging would occur "following the end of the nesting season of endangered shore birds around February", but the work was not done.
A month later, the state election was held and Ms Catley's Labor party was elected.
Now the Minns government is in power, the channel works have progressed.
Ms Catley, who is also NSW Police Minister, said the aim of the dredging is to "ensure the improvement and maintenance of safe navigation for commercial and recreational vessels".
"The dredging will reinstate a minimum depth in the main channel to allow vessels of 2.5-metre draft and a channel width of 30 metres.
"Each of these dredging campaigns will remove 15,000 cubic metres of sand.
"Transport for NSW is also developing a 10-year strategy for the ongoing dredging of the channel."