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Illawarra Harbour port scheme

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Illawarra Harbour was the name of a port that was to be constructed on Lake Illawarra. The port scheme commenced around 1888. The port was to have been developed by a company known as Illawarra Harbour and Land Corporation. A tender was accepted, in late 1892,[1] and work commenced on a breakwater at the entrance of the lake at Windang.[2][3] In 1895, a railway was constructed on the western side of the lake. In 1898, a select committee hearing was told that the vast majority of shares in the company were in fact owned by an English-domiciled company, Illawarra Harbour and Railway Corporation.[4] A planned dredged channel across Lake Illawarra and wharves on the company's land, at Elizabeth Point, near Tallawarra Point, were not constructed, no coal was ever shipped, and the mine and jetty scheme was abandoned in 1902.[2] The Illawarra Harbour and Land Corporation attempted to sell a sub-division of 288 allotments in 1897, without much success, and land sales seem to have been its ultimate objective, rather than the port.

The only parts of the Illawarra Harbour port scheme that was ever used were some land, where the Dapto Smelting Works—a venture closely associated with the port scheme—was situated, after 1895, and the railway, after being connected to the smelter site and its sidings by another short railway line. The smelter closed, in 1905, due in part to the absence of a nearby port, which affected the feasibility of smelting low-grade ores.

History

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Early years

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Map of the scheme (1889)

John Sutherand introduced a private member's bill (Illawarra Harbour and Land Corporation Bill 1889) in the New South Wales Legislative Assembly in April 1889. The bill had a first reading, but, after being referred to a select committee, did not proceed further.[5] A new bill was introduced by Michael Chapman, in April 1890.[6]

The enabling legislation was passed in December 1890[6][7][8] and land, known as the Lakelands Estate, was purchased on the western foreshore of the lake. Approval was obtained to quarry stone from Windang Island, to use in a breakwater, in late 1891.[9] A tender was accepted, in late 1892,[1] and some limited work was done on a breakwater at the entrance of the lake at Windang,[2][3] by July 1893. The estimated cost of all the harbour works was £150,000.[10]

Revival

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in 1893, Australia entered a serious economic depression, which involved a banking crisis. By 1895, it appeared that the port scheme had stalled. However, in that year a select committee was told that, while the original purpose had been as a port for coal, there was now a plan to erect a smelter for sulphide ores.[11] One envisaged advantage of the smelter to the port would be that ships would arrive ballasted with ore, for smelting, and depart carrying cargoes of coal.[12]

Further, it was stated that the interests associated with the new smelter would guarantee the debentures of the land company, allowing construction of a railway to the site of the future wharves.[11] The outcome was that the port scheme received further impetus. The Illawarra Harbour and Land Corporation Act Amendment Act was passed, in December 1895, but it set time constraints on completion of parts of the port scheme.[13] The chairman of the select committee, John Cash Nield,[11] was, by 1898, a director of Illawarra Harbour and Land Corporation,[4] Neild was still in 1898 a member of the Legislative Assembly of New South Wales,[14] and continued to do so until 1900.

Later construction

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Map of planned port (1895),[15] with private railways shown as dashed lines.

A railway was constructed from the planned site of the 'Ocean View' Colliery, south of Mount Kembla, to Elizabeth Point, just to the north of Tallawarra Point, where the company owned land and intended to develop the port and a township. The railway crossed, but was also connected to, the South Coast railway, a little south of Dapto railway station,[2][16] around where Fowlers Road crosses the railway line now.[17] It opened in December 1895. There was originally a signal box, known as Lake Illawarra Crossing, to control the crossing.[16] East of the crossing, the railway to the proposed port site followed much of the current route of Fowlers Road, toward the lake foreshore, before continuing via what is now a strip of open space,[18] in the direction of where the port would have been.[19]

In 1898, it was revealed in a select committee hearing that the contractor who built the railway, Robert Amos (c.1832—1905), had received only £500 in payment, but held a mortgage, for around £34,000, over the Harbour and Land Corporation's railway and their land. Amos stated that the railway ended about one mile away from the planned site of the wharves. He also stated that some of the other harbour works—the entrance works at Windang and the dredging of the channel across the lake bed—had not proceeded, due a lack of funds from the company. He stated that, while a sand dredge had been arranged, it was at Coolangatta and needed transporting to the worksite.[4] The company secretary, Frank Jarvis, stated that around £3,503 15s. was showing in the company's books as having been expended on the harbour works, up to September 1898, and only £800 of it since December 1895.[4] The select committee struggled to understand the complex ownership arrangements, the relationship between various interested parties, the apparent lack of progress, and the seeming lack of funds, despite the company involved supposedly being well-capitalised.[4]

Ownership and control

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There were 10,000 shares in Illawarra Harbour and Land Corporation, of which—or so it was stated at the 1898 select committee hearings—only 30 were owned by various Australian directors and investors; the remaining 9,970 shares were owned by the English-domiciled company, Harbour and Railway Corporation Limited. The shares had £100 face value, deemed to be paid to £50 and with one £10 call having been made, bringing the declared paid up capital of the Harbour and Land Corporation to £600,000.[4] It was later alleged that the entire £600,000 had been applied to an inflated valuation of the land of the Lakelands Estate, at the time that it was purchased by Illawarra Harbour and Land Corporation, in what is now called a related party transaction.[20] If that allegation was correct, it would be consistent with the company being habitually short of funding for its harbour works.

Andrew Armstrong (c.1842—1921)—a Sydney-based lobbyist, land investor, and manager of land development ventures[21][22][23]—Lieut-Col. John Cash Neild (1846—1911)—a colourful NSW politician and later Senator[24][20]—and Mr. A. B. Chippindall (c.1853—1903)—local manager for Harbour and Land Corporation and Lakelands Estate[25][26]—were local directors of Harbour and Land Corporation, in 1898. Each had one share in the company. Edmund Barton (1849—1920)—NSW politician and later first Prime Minister of Australia and judge of the High Court—had been a director, but was no longer one, by late 1898, although he still owned one share.[4] Thomas Andrew de Wolf had been a director, up to around 1893. Andrew Armstrong was managing director, with a Power of Attorney for the English investors, and two of his relatives, J.H. Armstrong and J. Armstrong also held one share.[4] However, control of the company was held by the English company, Harbour and Railway Corporation Limited, an arrangement that shielded those with beneficial control from scrutiny in New South Wales.

Originally there were more than 30 shares held in Australia; a man by the name of C. Dyring owned 60, in 1891,[27] and the chairman of the Daily Telegraph , J. B. Carey, reportedly, had 30.[20] If the evidence given at the 1898 select committee is correct, they had sold their shares by 1898.[4] Very likely, there was only one buyer for the shares of Illawarra Harbour and Land Corporation, and that was Harbour and Railway Corporation Limited.

Land dealings

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At the select committee, in 1898, Thomas Andrew de Wolf (—1903)—a major shareholder and director of the English-domiciled company,[4] and a director of the Smelting Company of Australia[28]—was asked about the company's commitment to building the port, and replied to the effect that the main object of the company was to sell its land profitably. The company would build the port only, because the government or some other entity would not do so, to realise the consequent increase in the value of the land. De Wolf claimed that the company had bought its land for £90,000.[4]

One of the few to openly question the probity of the various land transactions and inflated valuations of the landholding was Richard Sleath (1863–1922).[20] Allegations were made by Sleath and two colleagues, Ferguson and Carroll.[29] Sleath stated—under parliamentary privilege, in December 1898—that the original purchase in July 1888, was for £35,000, of which £30,000 was covered by a vendor-provided mortgage loan. He also stated that there had been two subsequent sales; one in September 1888 for £240,000, and a second sale into the float of Illawarra Harbour and Land Corporation, on 1 October 1888, for £600,000 [20] It was presumably, with this last and highest-priced transaction. that the last official owners of the land were issued with sufficient shares in the new company, Illawarra Harbour and Land Corporation, to take a controlling interest.

In July 1894, the land had been close to being back in the hands of its former owner, Patrick Hill Osborne (1832 – 1902), who intended to subdivide it.[30] Evidence was given at the select committee in 1898, that a sum had been owed to Osborne, causing him to begin repossessing the land, as mortgagee.[4][20] Earlier in 1894, creditors of the company had petitioned to have it wound up, so presumably the supposedly well-capitalised company was not paying all its debts.[31] De Wolf relocated to London in the same year.[4][32]

Illawarra Harbour and Land Corporation had sold 500 acres at the northern end of the 'Lakeland Estate' to a group of entrepreneurs, known as the Camden Syndicate Limited, another English-domiciled entity, before the end of July 1895.[33] The Camden Syndicate then sold 300 acres of the land, three small mines, and some rights to the Smelting Company of Australia, for £50,000 in cash and 250,000 fully-paid £1 shares. That transaction secured the Camden Syndicate a controlling interest in the new smelting company, before the remaining 250,000 shares were offered to the public in London.[34][35] Much of the cash component of the land sale was used to pay off the original mortgage debt to Osborne, according to the evidence given to the 1898 select committee, by the Illawarra Harbour and Land Corporation's company secretary, Frank Jarvis.[4] The party in debt to Osborne over the original sale was then very probably, one or more of the Camden Syndicate.

The common major shareholders of the three companies[4][20][36] and the generous valuation of the assets strongly suggest that the two transactions leading to the formation of the smelter company, were yet again what is now known as related party transactions. A newspaper correspondent—one supporting the harbour scheme—in March 1897, wrote, "although it is not generally known that the Camden syndicate, which formed the Smelting Company of Australia, is a creation of the Illawarra Harbour and Land Corporation, such is the case".[36]

The members of the Camden Syndicate included Andrew Armstrong (c.1842—1921),[20] Benjamin Josman Fink (1847—1909)—a financier and land speculator, from Melbourne[37][20]— John Howell (1833—1910)[38]—an experienced and well-known mine manager and smelting expert, with financial interests in various mines—and Thomas Andrew de Wolf (d. 1903).[20] All four were residing in Australia in 1890, but two subsequently relocated to London; Fink following the spectacular collapse of his finances in 1892,[39] and de Wolf from around 1894.[4] As his Melbourne-based property empire collapsed, Fink was able to transfer various sizable assets to his wife Catherine. His reputation was damaged as a consequence, since others bore the cost of his financial problems.[37][39]

Around the time that the new smelter was nearing completion, an attempt was made to sell 288 sub-divided allotments belonging to Illawarra Harbour and Land Corporation. The subdivision was first advertised in December 1896. It was stated to be the 'first subdivision' and the site of "the nucleus of a model city". Advertisements emphasized the proximity to the smelting works and the buoyant prospects for the smelter and coal mines, but made no mention of the port or harbour, except for the word "Harbour" in the two companies' names.[40] A report of the auction held on 15 March 1897, to sell the lots was that, "The attendance was good, but bidding was anything but spirited". Only twenty-four lots were reported as being sold.[41] It seems to have been the last land sale by the company, and perhaps the actual end of the so-called port scheme as well.

Final years of the port scheme

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John Howell became the first general manager of the smelter. As late as February 1898, he was still stating publicly an expectation that the deepening of the lake bed for the new harbour would be completed within twelve months.[42] Howell resigned, in May 1898, to pursue his private mining interests.[43]

Select committee hearings were held concerning the Illawarra Harbour and Land Corporation Act Further Amendment Act, in late 1898.[4]

Another committee—the Works Committee—looking into a port for the Illawarra region, also in late 1898, concluded that it would take five to seven years to complete the Illawarra Harbour port; it did not recommend delaying the decision on an alternative artificial harbour at the existing coal port of Port Kembla.[44] The outcome was that the NSW Parliament hedged its bets, passing separate acts that both enabled the Port Kembla harbour works[45] and granted a further time of two years, to complete the Illawarra Harbour scheme.[46] One factor that kept hope for the Illawarra Harbour scheme alive was that, being a private venture, it would be built without cost to the NSW Government, who otherwise would be funding any work at Port Kembla.[47]

In April 1900, the Governer of NSW issued a proclaimation.. It made the depth of dredging 20 feet, below low water, instead of 15 feet, and granted an extension of time, to four years after 3 April 1900.[48]

However, the dredged channel across Lake Illawarra and the wharves at Elizabeth Point were not constructed, no coal was ever shipped, and the mine and jetty scheme was abandoned in 1902.[2]

Aftermath

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An artificial harbour—the Outer Harbour—was constructed progressively, by extending breakwaters at Port Kembla, between 1901 and 1937.[49]

A sum of £10,000 lodged with the Colonial Secretary, in December 1897, as security for the completion of the Illawarra Harbour port scheme,[4][46] was forfeited, following the formation of the Carruthers ministry in 1904. In October 1906, solicitors for the company demanded the return of the money, threatening legally action,[50] which apparently never took place. The company was still trying, unsuccessfully, to have the £10,000 returned, in 1910 and 1911.[51][52]

The Illawarra Harbour and Land Corporation lingered on, without it seems ever being wound up. Major protagonists in the events had died—Thomas Andrew de Wolf in 1903,[53] Benjamin Fink in 1909,[37] and Andrew Armstrong in 1921[21]—before the company was struck from the companies' register on 31 May 1940.[54]

The only parts of the Illawarra Harbour scheme that were ever used were the land where the Dapto Smelting Works was situated, and the railway after being connected to the smelter site and its sidings by another short railway line. The smelter closed in 1905. The Illawarra Harbour and Land Corporation's unused private railway was lifted, probably around 1938.[55]

Robert Amos still held his mortgage over what remained of the Lakelands Estate, in September 1904,[56] and he advertised the sale of eleven farms on a portion of the land, by an auction to be held on 10 December 1904.[57] After his death, in December 1905,[58] some of the land stayed in the hands of the trustees of his estate, being gradually sold; one portion of 72 acres became the Dapto Greyhound Track.[59][60] Some land still remained in family hands, around 1927.[61]

One of the sets of railway wagon wheels near Windang Island (2015)

The company itself did still own small parcels of land on what had been the Lakelands Estate, but when sued for unpaid rates in 1919, "the defendants did not appear".[62]

Two parcels of land "said to be in the possession of the Illawarra Harbour and Land Corporation" were resumed by Wollongong City Council, during the 1970s.[63][64] Attempts were made to gain title to three separate plots of the former company's land in Dapto, under Squatters' Rights, in 1965,[65] 1968,[66] and 1975.[67] The company was no longer in existence, to oppose the claims to title over the land.[54]

Remnants

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There are some rusted rail wagon wheels, used in construction of the original breakwater, near Windang Island,[3] but that original partially-constructed breakwater was destroyed by storms. The entrance to Lake Illawarra still requires dredging, to keep it open for small craft and to maintain water quality within the lake. At times it has closed completely due to an accumulation of sand.[68] Although much of the former Lakelands Estate has been developed, the intended site for the wharves remained open land in 2025.[19]

References

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  1. ^ a b "The Sydney Morning Herald". Sydney Morning Herald. 10 December 1892. p. 8. Retrieved 13 June 2025.
  2. ^ a b c d e "Colliery Railway Haulage in the Illawarra | Illawarra Heritage Trail". 18 September 2019. Retrieved 3 June 2025.
  3. ^ a b c "Windang Island and Railway Relics". Shellharbour City Council. Retrieved 8 June 2025.
  4. ^ a b c d e f g h i j k l m n o p q r "Report from the Select Committe of the Illawarra Harbour and Land Corporation Further Amendment Biil, Together with the Proceedings of the Committee and Minute of Evidence" (PDF). Legislative Council of New South Wales. 20 October 1898.
  5. ^ "Illawarra Harbour and Land Corporation Bill 1889". www.parliament.nsw.gov.au. Retrieved 15 June 2025.
  6. ^ a b "Illawarra Harbour and Land Corporation Bill 1890". www.parliament.nsw.gov.au. Retrieved 15 June 2025.
  7. ^ "ILLAWARRA HARBOUR AND LAND CORPORATION BILL". Illawarra Mercury. 13 December 1890. p. 2. Retrieved 30 May 2025.
  8. ^ "Ilawarra Harbour and Land Corporation Act, 1890, No.54". Trove. Parliament of New South Wales. 30 December 1890. Retrieved 30 May 2025.
  9. ^ "THE LAKE HARBOR PROJECT. Application for Winding Island". Illawarra Mercury. 10 December 1891.
  10. ^ "Lake Harbor Works. A recent inspection". Illawarra Mercury. 18 July 1893. p. 3.
  11. ^ a b c "ILLAWARRA HARBOR AND LAND CORPORATION ACT AMENDMENT BILL". Illawarra Mercury. 26 November 1895. p. 2. Retrieved 10 June 2025.
  12. ^ "SMELTING WORKS AT DAPTO, LAKE ILLAWARRA". Sydney Mail and New South Wales Advertiser. 5 June 1897. pp. 1187, 1188. Retrieved 12 June 2025.
  13. ^ Parliament of NSW (12 December 1895). "Illawarra Harbour and Land Corporation Act Amendment Act of 1895" (PDF).
  14. ^ "NEW SOUTH WALES PARLIAMENT". Adelaide Observer. 10 December 1898. p. 9. Retrieved 19 June 2025.
  15. ^ "Illawarra". Australian Town and Country Journal. 9 November 1895. p. 27. Retrieved 10 June 2025.
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  40. ^ "Advertising". Daily Telegraph (Sydney). 12 December 1896. p. 3. Retrieved 16 June 2025.
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  45. ^ NSW Parliament. "An Act to sanction the construction of a deepwater harbour at Port Kembla, and to provide for levying wharfage rates on goods, merchandise, packages, and articles landed at or laden from any wharf or jetty within the said harbour [23rd December 1898]" (PDF).
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  49. ^ Spooner, E.S. (1938). The History and Development of Port Kembla - Paper prepared for presentation to the Engineering Conference of the Institute of Engineers Australia (30 March 1938). Copy held by the National Library of Australia: NSW Department of Public Works. p. 6.
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  51. ^ "Illawarra Harbour and Land Corporation". Illawarra Mercury. 9 August 1910. p. 2. Retrieved 15 June 2025.
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  53. ^ "The Week's Obituary". Sydney Mail and New South Wales Advertiser. 1 April 1903. p. 788. Retrieved 16 June 2025.
  54. ^ a b "COMPANIES ACT, 1936 (SECTION 323 (5))". Government Gazette of the State of New South Wales. 31 May 1940. p. 2389. Retrieved 15 June 2025.
  55. ^ "That Old Railway Line". South Coast Times and Wollongong Argus. 27 May 1938. p. 22. Retrieved 13 June 2025.
  56. ^ "CENTRAL ILLAWARRA COUNCIL". South Coast Times and Wollongong Argus. 17 September 1904. p. 12. Retrieved 15 June 2025.
  57. ^ "Advertising". Daily Telegraph (Sydney). 23 November 1904. p. 3. Retrieved 15 June 2025.
  58. ^ "PERSONAL". Daily Telegraph (Sydney). 7 December 1905. p. 7. Retrieved 15 June 2025.
  59. ^ "Central Illawarra Council". South Coast Times and Wollongong Argus. 10 February 1911. p. 14. Retrieved 15 June 2025.
  60. ^ "Satellite view, Dapto Greyhounds · 89/99 Princes Hwy, Dapto NSW 2530, Australia". Google Maps. Retrieved 15 June 2025.
  61. ^ "CENTRAL ILLAWARRA COUNCIL". South Coast Times and Wollongong Argus. 15 April 1927. p. 17. Retrieved 15 June 2025.
  62. ^ "DAPTO". South Coast Times and Wollongong Argus. 14 February 1919. p. 17. Retrieved 16 June 2025.
  63. ^ "NOTICE OF RESUMPTION OF LAND BY WOLLONGONG CITY COUNCIL.—LOCAL GOVERNMENT ACT, 1919.—Form". Government Gazette of the State of New South Wales. 8 September 1972. p. 3679. Retrieved 15 June 2025.
  64. ^ "NOTICE OF RESUMPTION OF LAND BY WOLLONGONG CITY COUNCIL.—LOCAL GOVERNMENT ACT, 1919.—Form 3". Government Gazette of the State of New South Wales. 15 February 1974. p. 547. Retrieved 15 June 2025.
  65. ^ "REAL PROPERTY ACT NOTICE". Government Gazette of the State of New South Wales. 26 March 1965. p. 1002. Retrieved 16 June 2025.
  66. ^ "REAL PROPERTY ACT NOTICE". Government Gazette of the State of New South Wales. 20 September 1968. p. 3764. Retrieved 16 June 2025.
  67. ^ "REAL PROPERTY ACT NOTICE". Government Gazette of the State of New South Wales. 21 November 1975. p. 4876. Retrieved 15 June 2025.
  68. ^ "Lake Illawarra Channel Entrance Dredging". Neumann Dredging. Retrieved 12 June 2025.
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