Cash offer deepens controversy over Docklands’ heritage fleet

The long-running standoff between Development Victoria (DV) and Docklands’ heritage fleet has escalated, with DV now offering operators cash to vacate North Wharf – a move described by critics as a “pay-off” that does nothing to solve the fleet’s future.

In an email sent to the Alma Doepel, Enterprize and steam tug Wattle on September 12, DV confirmed it would provide each vessel $30,000 – $90,000 in total – on the condition that the ships leave their current home by January 18, 2026, and take no action to delay vacant possession of Shed 2, which DV is legally obliged to hand back to developer Lendlease.

The offer has stunned heritage groups, which argue the same money could easily be invested into temporary facilities at NewQuay, keeping the fleet in Docklands rather than forcing it out to Williamstown’s Seaworks precinct at prohibitive cost.

Alma Doepel chair Matt McDonald told Docklands News the cash offer raised serious questions about DV’s priorities.

“If Development Victoria is willing to pay $90,000 just to get rid of us quietly, why can’t that money go towards setting up some basic services beside Ron Barassi Park at NewQuay?” he said. “That would keep the fleet together, in Docklands, and serving the community – which is what we’ve been doing for decades.”

While DV has previously dismissed NewQuay as “not suitable”, citing lack of utilities and deterioration of the seawall, critics say the agency has failed to provide clear reasons or explore modest solutions.

Ports and Freight Minister Melissa Horne and a representative from Minister for DV and Precincts Harriet Shing’s office attended a meeting with DV representatives over the issue in September.

Docklands News understands that the heritage fleet has since requested a peer review of DV’s seawall assessment after concerns were raised about the validity of its findings.

The impasse comes after months of mounting tension. The Alma Doepel, which has been undergoing restoration in Docklands for 16 years, has repeatedly said it cannot move without a viable alternative site.

Peter McIver, chairman of Bay Steamers Maritime Museum Ltd (BSSM), which operates the steam tug Wattle, told Docklands News that the current situation was leading to a lot of anxiety among its volunteers.

Mr McIver said it was still urgently seeking $400,000 to make Wattle operational and that a potential move to Seaworks would see it lose a year’s worth of time and money that it desperately needed.

“Charities such as BSMM add to the fabric of local communities, providing volunteering opportunities and local community involvement,” he said, adding that the steam tug’s restoration was akin to a “men’s shed on steroids”.

He said despite Seaworks and the City of Hobsons Bay “wanting us”, as opposed to DV “trying to get rid of us” – the cost of moving was “colossal”, and that the Wattle was facing the prospect of becoming a “static display” unless it received urgent support.

The fleet’s role in activating Victoria Harbour and preserving the area’s maritime heritage has been widely acknowledged, but DV appears determined to sever ties ahead of its planned withdrawal from Docklands by 2030.

Commercial realities are also a sticking point. Operators warn that Seaworks, DV’s preferred relocation site, comes with lease costs in the order of $120,000 a year – far beyond the reach of not-for-profit heritage organisations. With the Alma Doepel only recently entertaining relocation as an option, stakeholders stress that without substantial financial support, any move to Williamstown would be untenable.

The latest offer from DV has done little to ease those concerns. Instead, heritage advocates argue it underscores the agency’s unwillingness to find a Docklands solution.

“This is not just about ships,” Mr McDonald said. “It’s about Docklands’ identity. The fleet has been part of Victoria Harbour for generations. Losing that presence would mean losing part of what makes this place unique.”

While DV confirmed with Docklands News in July that the fleet would be able to continue berthing at Collins Wharf through to mid-2026, this is only reserved for the boats themselves – not all their goods from the sheds.

With just four months until the deadline, operators are scrambling to secure political and community support. The heritage fleet’s future now hangs on whether DV and government ministers will reconsider their stance.

All three heritage boats will be participating in this year’s Melbourne Boat Show in October. •