The authority said the hub for the delivery of materials such as sand,aggregate and cement would meet the city's rising demand for concrete and construction materials and support infrastructure projects including the Sydney Metro,WestConnex and Western Harbour Tunnel in the next decade.
But the development has raised the ire of residents across the water in Pyrmont who are concerned the facility will generate around-the-clock noise,traffic congestion,dust and pollution from ships.
The authority said the building would consist of separated storage bays to receive,store and distribute dry bulk construction materials to concrete batching plants and construction sites.
"Dry bulk construction materials will be offloaded from ships via their unloading equipment and into the facility,where the materials can then be loaded from the storage bays onto trucks within the building,"the authority said in a statement.
"The port’s berths provide a low-cost,low-impact and sustainable way to bring dry bulk construction materials necessary for concrete production into the city."
The authority has previously indicated the construction is consistent with the state government's ambition to maintain the Glebe Island and White Bay area as a working port.