The new company was incorporated by a private Act of the New South Wales Parliament in July 1851, taking the assets of the old company and a capital of £320,000, and granted the power of making its own by-laws.

The former manager of HRSN, James Patterson, was appointed Secretary. He had supervised the building of HRSN’s three paddle steamers, he therefore had considerable knowledge of the type of vessel required, so went to England to order four new steam vessels for the coastal trade.(3) The four ships would, in addition to the purchase of bigger and better vessels, confirm ASN as having a virtual monopoly on the east coast

It should be born in mind that at this time the colony of New South Wales included what later became Queensland. Residents of Moreton Bay started their efforts to become separated from NSW in 1852, by requesting that they should have their own separate colony of Queensland, something opponents of separation in Sydney were totally against.

A historic ‘first’ for ASN was the launch of the “Ballarat”, from ASN’s works at Pyrmont on 16th February 1853, from parts which had been shipped out from England and assembled there, the engines for which were taken from the wreck of the “Raven”.(4) The launch created much interest and was another nautical milestone for NSW, and now meant that ASN had four steamers on the Sydney to Melbourne route.

(3) Pixley, Cmdr. N.D., ‘The History of the A.U.S.N.Co. Ltd. and its Predecessors’ in The Historical Society of Queensland Journal, Vol. 5, No. 2 (1954) 97
[Used with permission and courtesy of the State Library of Queensland]
(4) Ibid 977

In 1860 ASN entered the Adelaide to Melbourne trade, followed shortly afterwards by a new mail service from Melbourne to King George Sound (West Australia) to connect with the P and O mail line.(5) The following year the Company successfully tendered for the Adelaide to Albany section. At this time, therefore, ASN had separate mail contracts to West Australia, one with the Victorian Government for the Melbourne to Adelaide section, and another with the South Australian Government for the Adelaide to Albany section. Because the arrangements worked so well, in September 1862, the mail contract was renewed under one contract, rather than two separate ones, from Melbourne to Adelaide to Albany, the service continuing until 1873.(6)

(5) McKellar, From Derby Round to Burketown, 29
(6) Ibid

ASN Houseflag

In 1859 Queensland finally managed to separate from NSW and became a colony in its own right. Almost immediately the colonists set about organising a shipping company to rival the ASN.(7) This was because the Company had always set high prices, and with a virtual monopoly it could afford to dictate rates.

In addition Queenslanders were upset that the Company would not link the ports of Wide Bay, Port Curtis and Sydney with Brisbane unless it could get a mail contract. Mail contracts were very important to the shipping companies, as it was guaranteed income.

(7) Pixley, ‘The History of the A.U.S.N.Co.Ltd’ 980

A meeting was held at the town of Ipswich as a result of a circular that had been issued for the possible formation of a Queensland company. It was in March 1860 that a new shipping company was proposed with a capital of £50,000 in 2500 shares of £20 each.

The company was to be called the Queensland Steam Navigation Company (QSN), (8) and would be in opposition to ASN. This company, however, would ultimately fail with all its assets taken purchased by ASN in 1868.

(8) Pixley, ‘The History of the A.U.S.N.Co.Ltd’980

1881 saw the formation of a new company which would be quite a threat to ASN and would also be, by far, ASN’s strongest competitor, being backed by the well established British India Steam Navigation Company, the name of the new company was the Queensland Steam Ship Company,(9)