Sydney's Garden Island is in line for a $213 million facelift, with the federal government spruiking it as a boost for national security.
Defence has proposed upgrading the two existing wharves at the harbourside Navy facility to address "severe condition and capacity issues".
The cruiser and oil wharves will be demolished and rebuilt as one, while an adjoining wharf will be extended.
The cruiser wharf has deteriorated to the point that it is now fenced off to restrict pedestrian access and can't be used to carry out critical ship maintenance activities, or berth ships, except in low-wind conditions.
Prime Minister Malcolm Turnbull says the upgrade will improve Defence operations, enhance national security and create about 300 jobs.
Work on the project, which has been referred to a parliamentary committee for scrutiny, is expected to begin in mid-2017 for completion by late 2020.
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