NSW Government Establishes Panel of Experts To Identify Next Cruise Terminal – Could it be Newcastle?

The New South Wales Government has taken a step towards expanding the state’s booming cruise industry by establishing a panel of experts to identify the preferred location for a potential new cruise terminal. Announced today by Transport Minister Jo Haylen, the Cruising Industry Advisory Panel aims to ensure NSW can maintain and grow its market share of Australia’s multi-billion-dollar cruise sector well into the future.

“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,” Minister Haylen said. “NSW’s next permanent cruise terminal will be a massive new piece of infrastructure, and we have to get it right.”

The formation of the panel comes on the back of a record-breaking 2023-24 cruise season. Data released today by Cruise Lines International Association (CLIA) and the Australian Cruise Association (ACA) reveals that the cruise industry contributed an unprecedented $4.41 billion to the NSW economy, up 60.4% from the previous financial year. The industry also supported employment for 13,714 full-time jobs in NSW over 2023-24, marking a 50% jump in jobs.

“This year we will see 23 maiden cruise ship arrivals to NSW ports, bringing hundreds of thousands of passengers eager to explore Sydney and our state,” Minister Haylen added. “There’s been some excellent growth in this industry, and our new panel will help the cruise industry continue to grow sustainably in the years ahead.”

Amid this surge in cruise activity, Newcastle is positioning itself as a prime candidate for the state’s next cruise terminal. The city is set to benefit from the cruising boom with 12 cruise ship visits scheduled for the upcoming summer, bringing 12,500 passengers and 6,500 crew. These visitors are expected to explore the diverse array of shore excursions, showcasing the best of the Hunter region and nearby coastal towns.

Newcastle’s aspirations to become a cruise hub are not new. In 2016, the NSW Government announced a $12.7 million investment to build a dedicated cruise terminal in Newcastle, a project that was met with enthusiasm from local businesses and tourism operators. The terminal was expected to boost the regional economy by attracting more and larger cruise ships, with projections of transforming Newcastle into a home port where cruises could start and finish.

However, the project faced significant challenges. By 2018, escalating construction costs and design changes led to funding shortfalls. The Port of Newcastle revealed it could not complete the terminal within the original budget, citing a “heated” construction market and additional engineering expenses for the terminal’s iconic curved roof design. Requests for additional funding were unsuccessful, and by April 2019, Infrastructure NSW officially withdrew the $12.7 million in state funding, effectively halting the project.

Will Creedon, a Hunter tourism advocate, expressed disappointment over the lost opportunity at the time. “We’ve dropped the ball,” he said. “The community is at a loss, and we’re going to lose out in the long run.”

The absence of a dedicated terminal has meant that cruise ships visiting Newcastle continue to use temporary facilities, which industry leaders argue do not provide the optimal first impression for international visitors. Steve Odell, Managing Director (Asia Pacific) of Norwegian Cruise Line Holdings, highlighted the importance of proper infrastructure during a 2018 visit: “A terminal provides a different experience for people—both efficiency and showing off the town.”

The establishment of the Cruising Industry Advisory Panel offers Newcastle a renewed chance to secure the cruise terminal it has long sought. Local businesses and tourism operators are advocating strongly for the city to be chosen, emphasising the economic and social benefits a dedicated terminal would bring to the region.

Cruise Lines International Association (CLIA) Managing Director in Australasia, Joel Katz, highlighted the significance of the cruise industry’s growth. “Cruise tourism has been thriving in Australia, and the economic benefits are now higher than they have ever been,” he said. “Cruise tourism is now worth $8.43 billion a year to the Australian economy—billions of dollars more than previous years—and it supports more than 26,000 jobs in communities around our coasts.”

Australian Cruise Association (ACA) CEO Jill Abel echoed this sentiment, noting the broader impact on local communities. “The result is an enormous windfall for businesses like tourism operators, hotels and restaurants, retailers, transport providers and port operators,” she said. “In addition, passengers often return to destinations they initially discovered on a cruise, which creates added benefits for communities in the longer term.”

The upcoming cruise season is expected to bring 1.2 million passengers and crew from 312 cruise ship visits to NSW ports, signalling continued growth in the industry. While Sydney remains a focal point, regional ports like Newcastle stand to gain significantly.

As the Cruising Industry Advisory Panel begins its work to identify the best location for a new cruise terminal, Newcastle’s combination of strategic location, existing port facilities, and strong community support make it a compelling choice.

For Newcastle, this represents not just an opportunity to revisit past ambitions but to realise a vision that could bring lasting economic and social benefits to the region. The city’s successful bid would also align with the government’s goals of distributing economic growth more evenly across NSW.

“The season ahead will see even more international cruise ships visit NSW, and it shows a growing momentum for the cruise industry as passengers get back on board post-pandemic,” Minister Haylen noted.

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