At a meeting of Stewartry Area Committee on Wednes-day in Kirkcudbright, councillors agreed the project offered benefits to the local economy and decided unanimously to offer the money to John Scott Timbers, which will undertake the £75,000 survey.
Neil Dyson, of South West Timber Transport, said the quay would operate similarly to Ayr or Troon.
"There would be substantial ships using the channel but it wouldn't need to be dredged, just checked for obstructions," said.
According to Mr Dyson, ships would bring logs from the Argyll coast. At present they are delivered to the area on timber trucks.
This would mean a reduction of 250 such vehicles on Galloway's B-roads.
Helen Friedrichsen, economic regeneration officer, said: "The survery will look at environmental impacts what with the Wigtown Bay Nature Reserve being right across the sands and there will be constant communication with all bodies concerned, such as the Wigtown Bay Advisory Committee.
"We think this is a very positive project with the potential for contracts and spin-off benefits for the wider communities in the area."
She added that in the future, there could be a possibility of the quay being used for renewable energy support such as those near the Mull of Galloway.
When asked whether the ships would deem a proposed railhead in Ayrshire uneccessary, Mr Dyson said the two would work together and would provide timber to different parts of the industry, therefore one would not overshadow the other.
Councillor Thomas Jacques, who was chairing the meeting in the absence of convenor Patsy Gilroy, said: "It's a very interesting project and we're pleased to have it before us today."