Birdon was awarded the $40 million contract to design and build the replacement for the brigantine Sail Training Ship (STS) Young Endeavour.

"The economic benefit will definitely stay in the region," Mr Smith said.

The ship been operated by the Royal Australian Navy for more than three decades. It provides development and sail training to Australian youth under The Young Endeavour Youth Scheme.

The project to build the ship is scheduled to start in Port Macquarie from mid-2023 and it's due to be completed in 2024.

Mr Smith said Birdon was proud to be awarded the prestigious project.

"It's a once in a lifetime opportunity," he said.

"It's very different to the typical work that we generally undertake in Port Macquarie and around the country.

"It (the ship) is unique and it's held with such high regard within the navy."

Mr Smith said extensive planning and design work has gone into the project.

"The process is very well structured," he said.

"We're confident we'll have the right design and the right approach."

It's also one of the largest projects that Birdon has been awarded in Australia.

Each year the Young Endeavour, launched in 1987, travels along the east and south coasts of Australia in 20 voyages guided by a crew of nine trained Royal Australian Navy personnel.

Ship attendees aged 16 to 23 years apply to navigate, keep watch and take the helm of the Endeavour.

The ship was originally given to Australia by the British government in 1988 to celebrate the Australian Bicentenary.

Birdon will work with Dykstra on the core vessel design, and will also be responsible for the design, engineering, and integration of all the vessel's systems, including mechanical, electrical, propulsion, communication & navigation systems.

The Young Endeavour contract will support up to 90 regional jobs and 12 apprenticeships, while also providing contracts to businesses.

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