The Gran Fondo was to be held in conjunction with the International Cycling Grand Prix Criterium Series in December. However, the mass bike ride has been postponed due to "unresolved logistical issues", including the traffic challenges posed by the Jamberoo Action Park on a busy summer day.

Destination Wollongong general manager Mark Sleigh said the Gran Fondo was to be the key event of the 2013 Multi Sport Festival planned for Wollongong on the weekend of November 30 and December 1 and as a result the multi-sport component will not be going ahead in 2013.

Mr Sleigh said Destination NSW was currently in discussions with the organisers of the 2013 criterium series with regards the race returning in December 2013.

The grand prix cycling event at Flagstaff Hill had a successful debut last December and was to take place on the same weekend as the Gran Fondo.

The proposed Gran Fondo would have seen more than 4000 riders compete in either a 100 kilometre or 160 kilometre road race starting and finishing in Wollongong.

The route was to take in Shellharbour, Kiama, Jamberoo and Southern Highlands landmarks, including Macquarie Pass.

A joint initiative between the NSW Government through Destination NSW, Wollongong City Council and USM Events, the Gran Fondo was devised to become the state's marquee major cycling event.

USM events director Chris Price said there were unresolved logistical issues that may affect "the quality of the course, the experience of participants and the non-event community".

Mr Price said the non-event community referred to included a number of villages on the proposed route as well as the Jamberoo Action Park, taking into account it was a very busy time of year for the park and there was expected to be a lot of traffic heading in that direction should it be a hot, summer day.

Mr Price said USM Events would undertake further detailed planning, including the option to reschedule the event to a time when demand on the roads is reduced, but there was no proposed timeframe at this stage.

In a statement, Jamberoo Action Park executive director Dax Eddy said the action park was extremely disappointed to learn that the Gran Fondo had been postponed and the park fully supported and encouraged the development of new tourism-related opportunities to the region.

"Jamberoo Action Park is hopeful that the regulative authorities [responsible] for the planning and implementation of this event will be able to work through any issues associated and bring this fantastic cycling event to our region in the future," Mr Eddy said.

"These authorities need to be fully satisfied that this event can proceed with the safety and wellbeing of both the participants and road users of the proposed course in mind and that logistical issues are worked through to meet such outcomes."

Wollongong Lord Mayor Gordon Bradbery said he too was disappointed.

"As I understand it, the police have concerns regarding closure of roads and the traffic challenges," Cr Bradbery said.