Cape Don removal poses difficult salvage choices as harbour risks are assessed

NSW Maritime is considering a complex salvage operation for the MV Cape Don after taking possession of the deteriorating 2,000-tonne former lighthouse supply ship at Waverton in Sydney Harbour. An independent survey completed early last year warned of serious hull damage and the potential for a major environmental incident. The ship's former operator disputes any suggestion that it ignored safety and says later repairs must be considered.

The vessel remains moored at Balls Head, close to a heavily used part of the harbour. Removing it safely is not straightforward because its weakened structure could break apart during lifting or dismantling. Officials say the logistical work means removal may not occur until next year, despite the urgency.

An older inspection raised major concerns

The private survey, commissioned for Transport for NSW and undertaken by accredited marine surveyors, described severe deterioration and bilge pumps inadequate to control flooding or incoming water. It assessed the risk of catastrophic failure in the port-side hull plate as extremely high, with an immediate and severe environmental threat if failure occurred.

Its inspectors identified extensive corrosion at the stern and holes through hull plating in the main hold. They warned that damage around an exposed section near the waterline made flooding particularly likely, and that disturbing the plate could enlarge existing openings.

The report said even the pressure from the wake of a passing boat could worsen a breach. The size of the empty space behind the damaged plating could make a resulting flood catastrophic. These are warnings from the earlier inspection, not a new claim that the vessel has already sunk.

Other recorded hazards included corroded guardrails, water entry, missing or rotten timber, flaking paint, a crane not properly stowed and a stairway at serious risk of failure. The survey also raised concern about asbestos, zinc-chromate paint and historic use of tributyltin antifouling paint, a chemical associated with harm to marine life, including reproductive changes in snails.

A difficult and costly removal

NSW Maritime executive director Nicole Watts says options include dismantling the ship at its mooring or supporting it from underneath in a bath-like structure before removal. That could require specialist equipment from overseas. A suitable operation already working in Darwin is among the possibilities once its current job finishes.

Depending on the method selected, the operation is expected to cost A$15 million to A$20 million. The cost is expected to fall on taxpayers because the vessel is uninsured. Procurement and technical planning still have to be completed; the estimate is not a signed salvage contract.

Watts says officials recognise the emergency and do not want a repeat of the MV Baragoola, the former Manly ferry that sank in 2022 beside the Cape Don at the Waverton Coal Loader. She says circumstances can change quickly even while a safe removal is being arranged.

Restoration history and the operator response

The charitable Sea Heritage Foundation bought the Cape Don in 2004. Volunteers have spent years restoring it with the aim of opening a museum. More recently it has supported university research and learning activities for cub scouts, including a project drawing on marine engineers' and shipwrights' skills to design a robot that cleans the water surface.

The surveyors questioned the condition or quality of several repairs observed during their visual inspection. Transport for NSW Maritime issued an unsafe-vessel notice to the foundation in June last year. Maritime took possession of the vessel last month.

Through legal adviser George Caramanlis, the foundation rejected suggestions of incompetence or indifference to safety and environmental protection. It said presenting historical observations as current findings without considering subsequent repairs, mitigation and technical evidence would be misleading. It did not directly answer the questions about the vessel's condition or lack of insurance, and said it was considering legal action over the reporting.

Watts says insurers are often reluctant to cover ageing vessels. She also signals broader action against unsafe craft around Sydney Harbour, including removal where required, saying the Cape Don will not be the only deteriorating vessel to receive attention.