Royal Caribbean is testing the waters at Wollongong's Port Kembla as a possible new homeport for its Australian fleet, which is fast running out of docking options in Sydney.

The operator of Australia's largest cruise ships has spent years seeking a solution to the chronic shortage of berths in Sydney Harbour, where the main cruise facility can accommodate only one ship at a time and its second terminal, in White Bay, is inaccessible to larger ships that cannot fit under the Sydney Harbour Bridge.

Looking first at Port Botany, located 12 kilometres southeast of the city centre, and now at Port Kembla, about 80 kilometres south, Royal Caribbean has this week made its boldest statement about setting up a new, or second, home in New South Wales.

Announcing that Radiance of the Seas would visit Port Kembla for the first time next year, the line's regional vice president Gavin Smith said it was “the first step in investigating an ongoing relationship” with the region.

“Including Port Kembla on our itineraries will provide our guests the opportunity to sample all that Wollongong and the South Coast has to offer. At the same time, it will give us the chance to investigate Port Kembla as an alternative home port, as an overflow to congestion in Sydney Harbour,” Smith said.

Destination Wollongong board member Cr Leigh Colacino revealed the venture had taken more than two years to plan.

“This is a wonderful outcome for the Illawarra and regional tourism, but also makes business sense for Royal Caribbean to make use of one of the most capable ports on the east coast of Australia,” Colacino said.

“Royal Caribbean understands the value of Port Kembla and Wollongong for tourism with its proximity to the Sydney CBD and airport, and the varied attractions of the region whether they are the vibrant nightlife, shopping and dining precincts, the beaches, adventure activities, the wineries of the South Coast and Southern Highlands or simply the outstanding natural attraction of the Illawarra escarpment.

Radiance of the Seas' visit is scheduled for October 2016 as part of a seven-night East Coast and Tasmania cruise. Meanwhile, Cruise Critic will keep an eye on other ships that may soon be going to 'the Gong'.   --By Louise Goldsbury, Australia Editor