There are renewed hopes that the $56million upgrade of Newcastle Airport's runway will become a reality in the May federal budget.
Despite missing out in last year's budget, talks have continued with government representatives about funding for the project, which would see the runway upgraded to accommodate international aircraft.
Newcastle Airport chief executive Peter Cock said he had been encouraged by recent discussions with Deputy Premier John Barilaro and the Department of Regional NSW about expanding the airport terminal and enhancing the Special Activation Precinct.
"We are strongly of the view that if the Special Activation Precinct is to reach its full potential, it should have at its heart, an international airport. Not only would that serve the global workforce working at Williamtown, but ensure the development of a freight and logistics sector that will serve northern NSW," he said.
"The City of Newcastle and Port Stephens Council are already heavily invested in Newcastle Airport and we continue to have very encouraging conversations with the federal government about funding an upgrade to the airfield."
It is estimated the runway upgrade would create 4500 jobs and generate $12.7 billion in economic benefits through international airfreight and increased tourism over the next two decades.
If the airfield upgrade funding can be secured, it will allow the airport to prepare a business case to partner with the state government to fund an expansion of the airport terminal.
"This would allow us to accommodate the greater passenger numbers flowing from international connectivity, which in turn would deliver unprecedented economic benefit to our region," Dr Cock said.
He also said he would seek a briefing on the project.
A spokeswoman for the Department of Regional NSW told the Newcastle Herald this week that the government was committed to supporting "opportunities that will generate jobs, attract new investment and deliver major infrastructure to the Hunter region."
"This includes the continued development of the Williamtown Special Activation Precinct, which is expected to create at least 4,300 new jobs in the region," she said.
"Discussions between the NSW Government and Newcastle Airport are ongoing.
"Departmental officials are continuing to work with the airport to explore opportunities associated with the Special Activation Precinct project, which is focused on growing Williamtown's strength as a defence hub, as well as supporting growth in the non-defence aerospace industry."
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