The state government has opened the tender process for the remediation work near Yachties' Cade, Endeavour Drive.

Boat maintenance including repairs, painting and cleaning as well as refuelling such as the storage and dispensing of fuel and waste oils have contaminated the site.

Read more: State government must 'come to the party' with harbour upgrade cash

Wollongong MP Paul Scully has encouraged local contractors to apply to complete the remediation work.

"The tender process is a good first step to address the long-term harbour plans," he said. "We need to get rid of that fence and open up access to the public again.

"Many visitors and residents wonder why there is that weird fence in one of the most picturesque places in the harbour.

"Once it is sensitively remediated then table and chairs and a beach shower could be put on the site so people can sit and have a coffee there."

Mr Scully said the remediation was the first essential step to making the harbour a fantastic tourist attraction.

"The harbour masterplan is nearly complete and the government should be releasing the final version in the not too distant future," he said.

"The area should be activated. It could have food trucks or markets their in summer. The remediation is the first down payment on the masterplan."

Tender applications close on July 9.

Read more: Co-op and boat repairs out, cafes and tourism in for Wollongong Harbour master plan