The NSW transport department has raised concerns about the traffic that will be generated by James Packer's planned hotel and casino at Barangaroo due to a shortfall in parking spaces for visitors and guests.

The agency also says Barangaroo developer Lend Lease has failed to consider the anticipated spike in local traffic volumes in the area from new light rail down George Street in the Sydney central business district.

Casino plan: James Packer. Credit:Reuters

Lend Lease has submitted its application to modify the concept plan for Barangaroo South, to accommodate Mr Packer's proposed 69-storey resort and relocation of its residential towers.