Opportunities and Risks in the Development of the NSW Shipping Industry, 1821-1850

Abstract

Between 1820-1850 New South Wales was transformed from a remote penal settlement into a thriving commercial maritime community. This thesis examines that transformation, the strategies employed to overcome social, economic, political and regulatory barriers to change, and the character and motivation of those who engineered it. It examines the dynamics of ship ownership in NSW, the changing profile of local maritime investment, and explores the business rationale for investing in either locally built or overseas shipping. It suggests that the absence of well-developed commercial infrastructures encouraged shipmasters to translate their business skills and networks into assets they applied to establish themselves as shipowners, shipping agents and merchants. Distance represented excellent opportunities for those whose business was connected with the sea. Its safe harbours and proximity to the Far East, Pacific and Southern Oceans provided a basis for the exploitation of all the region's marine and island resources. The colony's size, topography and fertile river lands, timber and coal resources in the coastal hinterland, encouraged the development of a specialised local shipbuilding industry. This thesis suggests that those most able to use distance to their advantage were mariners, shipbuilders, merchants and shipowners, encouraging entrepreneurial behaviour. At the same time, it is argued that this business environment, together with all the natural hazards of the colony's location, posed significant risks that the development of marine insurance sought to address. The validity of this risk management strategy is examined.