Port Otago chief executive Kevin Winders said the shed was removed from its original site and floated on a barge up Otago Harbour to the Dunedin harbour basin on Thursday.
"We had to move it as part of our development of the museum and our new office at Port Chalmers.
"We undertook to the community and the museum that we would repurpose it, rather than destroy it.
"So we shifted it around the port and now we’ve moved it down to Dunedin and it’s going to become the new pop-up cruise-ship terminal for our smaller cruise vessels that come into town."
It was lifted off the barge and into place on the T/U wharf near the intersection of Fryatt and Willis Sts, yesterday.
The larger cruise ships would continue to use the wharves at Port Chalmers.
"It’s good to repurpose it and it will be a good addition to the wharf to look after our cruise ship passengers when they’re getting off the small ships and going into town."
Progress is continuing on the new three-storey Port Otago administration building, and construction is on track for completion in July.
It will wrap around the heritage-listed Port Chalmers Maritime Museum.