The New South Wales Government has made good on its pre-election threat by pulling $12.7 million funding from the Newcastle Cruise Terminal project.

The funding for the Port was announced in 2016 by former Premier Mike Baird, but l

ast year the port revealed the project had suffered cost blow outs and the new building would not be able to serve as a home port for ships as a result.

Since revealing the cost blow outs, the NSW Government have refused to provide more money for the project.

Port of Newcastle has been working on this project on behalf of the NSW Government on the basis of providing a facility that meets the cruise industry’s needs while remaining within the funding provided.

“While disappointed construction of the terminal facility cannot proceed at this time, we respect that funding is no longer available,” a statement form the Port of Newcastle said.

In a statement to 2NUR-FM, an Infrastructure NSW spokesperson said “the $12.7 million in Restart NSW funding remains available to Port of Newcastle should the project be delivered as per the original scope agreed in the funding deed.”

Hunter Business Chamber CEO Bob Hawes has described the move as a significant setback for the region.

“The loss of funding is very disappointing, particularly for those tourism operators whoa re investing in facilities and services to


our visitor economy.

“We are currently receiving around 28,000 passenger visits per year from cruise ships and many of those are overseas visitors.

“It is clear that the existing facilities are inadequate for a growing market and do not help create a good first impression for our visitors,” Mr Hawes said.

The Port of Newcastle is acknowledged as an


tourism gateway in the Greater Newcastle Metropolitan Plan, which Mr Hawes says it should be treated as such.

Newcastle MP Tim Crakanthorp is

accusing the government of short changing the project causing it to stall.

“We’ve known that Newcastle would need more than the poultry $12.7 million provided, when Eden, in the Minister for Transport’s electorate is about to cut the ribbon on a $44 million cruise ship terminal,” Mr Crakanthorp said.

What could have been. The designs for the new terminal released in 2017.

The current cruise terminal. Photo: The Newcastle Herald.