The project was assessed and approved by the Newcastle Port Corporation, which is leasing the site to the proponent, Newcastle Agri Terminal, or NAT.
NAT will build the grain facility at Carrington's Dyke 2 berth, including two 20,000 tonne silos, as well as three smaller silos, for a total storage capacity of 60,000 tonnes of grain.
There will be grain processing facilities, overhead and ground level conveyors, as well as shiploading and rail receival facilities.
The silos and loader will be just a few hundred metres away from homes in Hill and Bourke Streets.
The terminal will operate 24 hours a day, seven days a week, with up to three trains unloading grain each day and 50 ships expected to use the facility each year.
As part of the approval NAT will be required to implement a strategy for communicating with surrounding residents, focussing on traffic management, noise and vibration, air quality monitoring and cumulative impacts.
The project assessment found the operation was unlikely to have any significant environmental impact and there was no need for an environmental impact statement.