Meet the site
City of Launceston is the best-preserved nineteenth-century steamship wreck in Australia and, like the William Salthouse, is protected by a permit-only zone. She was an iron screw steamer of 368 tons, 60 m (197 ft) long, built by Blackwood and Gordon at Glasgow, launched on 4 April 1863 and delivered to the Launceston and Melbourne Steamship Company, arriving in Melbourne on 16 September 1863. For two years she carried passengers, mail and cargo across Bass Strait without incident. At 7.20 pm on 19 November 1865 she left Port Melbourne under Captain William Thom with 23 crew and 25 passengers; at about 9 pm, in the middle of the bay, the steamer Penola struck her starboard side. Everyone was transferred to the Penola and the City of Launceston sank; the inquiry held her solely to blame. She settled upright into the soft silt in 21 m, and the silt saved her. The hull is intact from keel to deck, the engine and boiler are in place, the bow of the Penola is still firmly embedded in her starboard side, and cabin fittings, passengers' luggage and cargo remain inside. Evidence of the extraordinary 1860s salvage attempts using patented Maquay hydrogen-gas lifting devices survives on the site. Since 2009 sacrificial zinc anodes have been fitted to slow corrosion. Visibility is low and the current negligible, and the wreck is reached only on a shot at 14–22 m. Divers do not come for fish – though snapper, leatherjackets and bullseyes gather on the only structure for miles – but for the extraordinary sight of a complete 1860s steamer. Access is through Heritage Victoria permits for archaeological work and occasional supervised public dives; casual visits and anchoring within the 250 m zone are illegal. For maritime archaeology enthusiasts it is the most important dive in Victoria; for everyone else it is a site to know about and respect.
What you might see
Snapper, leatherjackets, bullseyes, sea stars, sponges and bryozoans on the iron, stingarees
Location
On the silty floor of central Port Phillip about 12 km east of Portarlington and 20 km south of Melbourne, in a 250 m historic shipwreck protected zone.
Facilities nearby
Portarlington, St Leonards or Patterson River ramps (parking, toilets)
Before you make plans
Conditions, access and operator schedules can change. This is a location guide, not a dive plan. Ask a local operator about current conditions and suitability for your training and experience.
Sources & further reading
scubadoctor.com.auscubadoctor.com.auen.wikipedia.orgRecord updated 26 Sept 2026. Source claims are being reviewed.