The ferries linking Scilly are to be replaced by one larger vessel
A new campaign group is calling for land next to South Pier in Penzance to be used as a ferry terminal for the Isles of Scilly service.
Cornwall Council is considering £44m plans for a terminal at Battery Rocks.
But objections from local people about the effect on the beach at Battery Rocks have delayed permission.
The new group, backed by Penzance Business Network, says a terminal at South Pier would be cheaper and protect the beach.
Plans were first put forward in 2009 for a terminal to take a new ferry which will replace the route's two smaller and slower ferries.
Cornwall Council has threatened to build a terminal in Falmouth if there is no agreement in Penzance.
The council's strategic planning committee will debate the project again on 8 March.
MPs have raised the issue in Westminster Hall: From BBC Democracy Live
The council said it would not be attending the public meeting on Wednesday, calling the proposal a "pipedream" which had "no real substance".
It said in a statement: "The Council's Option A proposal is now well understood and has attracted support and objection from within the local community and for that reason the Council does not consider it necessary or productive to attend the meeting scheduled for 3 March to re-present, yet again, its Option A proposal."
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