NSW Maritime seized the historic lighthouse tender Cape Don at Balls Head in Sydney Harbour for disposal on Sunday, October 18. The agency cited the risks the vessel's condition poses to public safety and the environment.
The New South Wales Government said recent inspections of the 76-metre vessel found extensive corrosion at the waterline, which increases the risk of water ingress.
It said dangerous chemicals could then enter the harbour. The government estimated that disposing of the vessel before it sank could prevent potential salvage costs of around AU$15 million ($10.4 million).
The owners had been issued two unsafe vessel notices under the Marine Safety Act. The notices required in situ repairs and arrangements for dry-docking, and the government said neither has been complied with.
"The vessel has not entered into a dry dock facility for inspections or major repairs for more than two decades," said Nicole Watts, Transport for NSW Maritime Executive Director.
Owner Sea Heritage Foundation disputes the assessment. It said three underwater inspections have found the hull sound. According to the foundation, specialist contractors have repaired the hull, fitted an automatic pumping system with 24/7 alarms and removed fuel oil.
The foundation said an independent assessment in August found that towing the ship to Garden Island for dry-docking was possible, subject to final approvals and defence scheduling at Captain Cook Dock.
Chairman Dr CJ Manjarres-Wahlberg has asked Minister for Roads Jenny Aitchison to commission an independent review. "The right and responsible sequence is to conduct an unbiased, independent review first and make a decision second," he said.
He told The Sydney Morning Herald that the charity intends to appeal the seizure notice.
Built at the State Dockyard in Newcastle, Cape Don was commissioned into the Commonwealth Lighthouse Service in 1963. She was the first of three Cape-class tenders and was decommissioned in 1990.