
19 October 2026
The NSW Government has seized the historic MV Cape Don, moored off the Coal Loader at Waverton, amid fears the deteriorating vessel could sink and leave taxpayers facing a $15 million salvage bill.
NSW Maritime took possession of the 76-metre ship on Monday 19 October, citing serious risks to public safety and the environment from hull corrosion and potential chemical leaks. The vessel is now slated for disposal.
The government claims the ship’s deteriorating condition poses a significant risk of sinking, with salvage costs estimated at $15 million.

However, the Sea Heritage Foundation, which has been responsible for preserving the vessel, has challenged the government’s assessment and demanded the evidence behind the estimated salvage costs be made public.
“We share the Government’s goal of a safe harbour,” said foundation chair Dr CJ Manjarres-Wahlberg. “A decision of this significance should rest on independent professional evidence, not on how a vessel looks from the water.”
NSW Maritime said the vessel’s owners had previously been issued two Unsafe Vessel Notices under section 46 of the Marine Safety Act, requiring repairs to the ship and arrangements for dry docking to undertake major hull works.
The authority said it had held nearly 50 formal meetings with the vessel’s owners concerning its condition.

Launched in January 1963 at Newcastle’s State Dockyards, the MV Cape Don initially operated in Western Australia and the Northern Territory.
The vessel later played a role in scientific research and maritime heritage. In 1979, it was used by the Victorian Institute of Marine Sciences for the first Bass Strait study, while in 1985 it transported the original Neptune Islands lighthouse tower to Port Adelaide for the South Australian Maritime Museum.
Following its retirement from commercial service, the ship was brought to Waverton, where it was acquired and maintained by the Sea Heritage Foundation and the volunteer-run MV Cape Don Society.
Contractors are expected to begin work on disposing of the vessel in the near future.
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Tuesday October 20, 2026