Sydney passenger terminal gets upgrade

Sydney's Overseas Passenger Terminal will undergo a multi-million dollar upgrade to meet increasing demand from visiting cruise ships.

The renovations at Circular Quay will start in May, during the low season, with most work completed by September, NSW Roads and Ports Minister Duncan Gay announced on Tuesday.

The terminal has served the booming cruise industry well since its last upgrade for the 2000 Olympics, he said in a statement.

"But with annual cruise growth at record levels in recent years, the time is right to improve efficiency and make sure it is capable of regularly handling the bigger ships that are now becoming more common."

Mr Gay said the upgrade was not about changing the shape of the iconic terminal building but about creating more space inside to improve passenger flows.

He said the OPT wharf would also be extended towards Campbell's Cove as a permanent solution to berthing very large ships like the Queen Mary 2, making a total investment of $49 million in Sydney's cruise infrastructure.

Sydney Ports CEO, Grant Gilfillan said renovating in such a high density CBD precinct would be challenging.

"We believe the upgrade will deliver efficiencies that will enable ships to achieve a much smoother one-day turn-around, which is preferred by cruise industry itineraries."

Mr Gilfillan said the $22-million terminal upgrade contract had been awarded to Sydney Company Watpac which delivered the redevelopment of the Museum of Contemporary Art in 2012.