The NSW government has announced yet another search for Sydney’s third cruise terminal in a bid to arrest the slide in cruise capacity that will hit the harbour – and Australia – next year.
This seemingly simple task has turned into a decades-long saga, a nautical odyssey plagued by bureaucratic battles, community outrage, and the imposing presence of the Royal Australian Navy, who occupy the most obvious site – but are refusing to vacate it.
The Overseas Passenger Terminal at Circular Quay, nestled amongst Sydney’s prime real estate, is undeniably picturesque. It allows cruise passengers to sit on the back desk of their chosen ship and see the bridge to the left, and the Sydney Opera House to the right.
It’s a truly iconic experience and a strong drawcard attracting American and European cruisers for this very experience. Waking up to this view, and stepping down the gangplank to see the city is a huge reason to cruise Australia.
But the OPT, as it’s colloquially known, built in 1960, is also woefully inadequate. Mega-liners, the floating behemoths of the cruise industry, simply don’t fit. They dwarf the OPT, forcing some to anchor in the harbour and ferry passengers ashore – a logistical nightmare and an unwelcome sight for those seeking postcard-perfect views.
So the NSW Government has yet again embarked on the search for a new home for these nautical giants.
But there is something new: they have ruled out the main contenders:
Garden Island, the historic base of the Royal Australian Navy. Strategically located with ample space, seems ideal. But the Navy, understandably protective of its territory, has repeatly repelled boarders. Sharing their home with hordes of holidaymakers was, it seemed, a step too far. Â
And Port Botany, a bustling industrial hub south of the city but a Labor stronghold. While it had the space, its appeal was somewhat diminished by its proximity to container terminals, oil refineries, and, well, Botany Bay – not exactly synonymous with luxury cruising. Residents weren’t thrilled either, fearing increased traffic, noise, and environmental impact.
Port Kembla, a steel town further south, known more for its industrial grit than its tourist appeal, is the prefered choice of the Port Authority of NSW. But not of the cruise industry.
Its proponents argued that it offers deep water access and the potential for a dedicated cruise terminal with minimal disruption to existing operations. However, the distance from Sydney’s main attractions and the need for significant infrastructure investment make it a less attractive option and, well, hard to sell.
Port Kembla won’t look good in those American brochures.
There was even a plan to get cruise ships to sail into Sydney Harbour, sample the views…then sail on to Port Kembla.
And then there are the port charges. Sydney is one of the most expensive ports in the world to park a cruise ship.
So Sydney finds itself caught in a seemingly endless loop of proposals, rejections, and community consultations.
The cruise industry, eager to capitalise on Australia’s popular cruise market, is growing impatient. The city risks losing out on valuable tourism revenue and the economic benefits that come with it.
Indeed, next season will feel the first brunt of the change – we are competing with the Caribbean (cheaper and with Americans more inclined to spend more on higher fares and drinks packages) and as a result there is a 30 per cent decrease in cruise capacity as demand here in Australia grows.
The cruise industry’s response is “fly cruise” – but that’s not so good for our economy. Cruise Lines International Association recently pointed out the industry was worth $8.4 billion to Australia and 26,000 jobs. Local cruiser travelling abroad for their favourite holiday is poor economics.
So how can this search succeed where all others have failed?
Sydney Harbour, while undeniably beautiful, is also a working harbour with competing interests. Finding a balance between commercial needs, environmental concerns, and the Navy’s operational requirements is no easy feat. Add to that the inevitable NIMBYism (“Not In My Backyard”) from residents wary of any development that might disrupt their lifestyle, and the challenge becomes even greater. Â
The lack of a clear vision and decisive action from the government hasn’t helped either. Successive administrations have grappled with the issue, commissioning studies and floating proposals, but a concrete solution remains elusive. The latest development involves a potential redevelopment of the White Bay Cruise Terminal, but its capacity to handle the largest ships just doesn’t work.
The modern cruise ships just can’t fit under the bridge.
So the question remains: will Sydney ever find a suitable third port for its cruise ships? The thought that Port Authority of NSW Captain Phil Holiday will jump in a tinny and will suddenly come upon a haven able to handle vessels like Icon of the Seas is pretty unlikely.
We can only hope that the canny Minns government, and the undoubtedly competent Ports Minister Jo Haylen, have something up their sleeves.
The clear answer is Garden Island. The problem is the navy chiefs don’t want to give up their prime position. However it makes no sense to have a major naval base in the middle of Sydney Harbour – remember Pearl Harbour? The Defence Minister needs to order a move of the naval base to a more appropriate location regardless of any need for the cruise industry.
The mega cruise ships are designed for the Northern Hemisphere markets, where cruise passenger numbers are huge compared to Australia. However, our governments need to be proactive and provide more ports to handle a more significant number of ships in the future.
It is absurd for the Navy to be based in Sydney in today,s world.
I’m not sure the blame can be totally laid at the NSW Government. Cruise lines, in their ever increasing quest to increase profitability, continue to build mammoth cruise ships. Of course, some ports are going to have difficulties with these monsters. I have been cruising since 1968 with over 40 cruises under my belt, and as far as I am concerned any vessel over 90,000 tonnes is just too big. Where will it end?
Fly-cruise is terrible! Who wants to sit in a cramped cabin for umpteen hours just to get to the ship? Self-organised flights can be cheaper anyway.