The Port of Newcastle in Australia has announced an $800,000 AU infrastructure upgrade from the state and federal government to enable the upgrade of mooring bollards at the port's cruise berth, according to a statement.

The federal Minister for Tourism and International Education, Senator Richard Colbeck, and NSW Parliamentary Secretary for the Hunter and Central Coast, Scot MacDonald, were in Newcastle to announce the funding.

The upgraded mooring bollards at the Channel Berth will enable the Port to host larger cruise ships.

Port of Newcastle CEO Geoff Crowe welcomed the announcement, which will increase the economic benefit of cruise shipping to the Hunter region.

"The current economic benefit of cruise shipping to the region is estimated by the Australian Cruise Association to be $11 million per annum, contributing to the growth and diversification of the region's economy," said Geoff.

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