Newcastle's efforts to impress the 2,000 passengers on board a cruise ship have not quite gone to plan, after a forklift truck unloading the ship ended up in the harbour.

The Pacific Sun sailed into Newcastle harbour this morning and docked at Dyke Point, where the New South Wales Government has just spent over $2.5 million creating a temporary cruise ship terminal.

The liner's arrival marks the start of the season for Newcastle, which is aiming to boost its profile as a cruise ship destination.

But it was far from smooth sailing, when a forklift involved in the unloading operation went off the edge of the berth and into the harbour.

The driver was rescued from the water and taken to John Hunter Hospital for observation, but he has since been released.

The Port Corporation says no luggage went into the water.

It has launched an investigation into the incident.