Ferry package that sparked Circular Quay scare was training device

Harbour City Ferries has confirmed the suspicious package found on a Sydney ferry, which sparked a brief lockdown of Circular Quay, was a training device.

"We can now confirm that the unattended package was a training device which was not recognised as a typical training device by staff," said Steffen Faurby, CEO of Harbour City Ferries.

The tourist hot spot was shut down by police after the unattended item was found on a ferry at about 1.30pm on Thursday.

"Our staff followed the correct procedure and notified police," he said in a statement.

"I fully support our staff in notifying the police in the first instance."

Mr Faurby apologised to passengers for the disruptions caused on Thursday afternoon.

The area, under the shadow of the Opera House and Harbour Bridge and near the overseas passenger terminal where a large cruise ship was docked, was teeming with tourists and workers as the drama unfolded.

Specialist police teams, including heavily armoured bomb squad members and dogs, were deployed to Circular Quay after reports of the suspicious object on the commuter ferry, Friendship.

The area was reopened about 90 minutes later after the object was deemed to be of no threat.

The scare comes just days after the terror alert level specific to police was lifted to "high" in line with the national alert, suggesting a terror attack is "likely" although not imminent.