Another new ship as Victorian Government backs $7.75 million paddlesteamer to transform the Murray River

  • Murray River Paddlesteamers has received government backing for its plan to launch a new ship, the Australian Sky.
  • It is already building the Australian Star, which will be based in Echuca, operating along the Murray River.
  • The new ship is projected to bring an estimated $5.8 million into the local economy.

Murray River Paddlesteamers has received the green light from the Victorian Government to transform the Murray into Australia’s river cruising hub and launch a second ship, the Australian Sky.

They are already building the 35-metre-long PS Australian Star, which will be the largest paddlesteamer in the southern hemisphere, and the only wood-fired, five-star, accommodated paddlesteamer in the world.

The Star and the Sky

Demand for Australian Star has been strong, with 85 per cent of sailings already sold or chartered for 2025–2026.

Construction of the luxury ships has been made possible thanks to a $2.25 million investment from the Regional Tourism Investment Fund. They have also received support from iconic Australian travel group APT.

Australian Sky will set sail in 2027, and will connect the north-west Victorian city with Adelaide on three- to 11-night cruises.

She will be carrying 38 guests, and generating an expected $5.8 million for the surrounding Sunraysia region.

The addition will bring Murray River Paddlesteamers’ fleet to three, alongside its original ship Emmylou. PS EmmyLou was built in 1980 and cruises the Murray River from Echuca. Australian Star and Australian Sky are poised to give Murray River Paddlesteamers’ fleet a new energy and modern flair.

When the work on the paddlesteamers is complete, they will feature 19 ensuite cabins, a fine-dining restaurant, a guest lounge with panoramic views and bars across two levels, the vessel will include accessible cabins, an elevator for access to all levels and multiple outdoor relaxation areas.

Murray River Paddlesteamers will operate luxury cruises leaving from the Port of Echuca along the Murray River – which was named one of the 25 best places in the world to travel in 2025 by National Geographic.

Murray River Paddlesteamers Director Craig Burgess said the PS Australian Star would be a game changer for Murray River cruising.

PS Australian Star will reimagine tourism on the Murray River, combining historic charm with five-star luxury,” he said.

Construction of the PS Australian Star has created 13 local jobs and a further 16 ongoing jobs will be created when it begins cruising later this year.

PS Australian Star’s engine being guided into place by a tradesperson
PS Australian Star’s engine being guided into place

What to expect from Australian Sky

Set to launch in late 2027, the new paddlesteamer, Australian Sky, will call Mildura her home. She will offer journeys along Australia’s longest river, taking guests down to Adelaide from north-west Victoria. Voyages will range from 3 nights to 11 nights.

The state-of-the-art vessel represents a major investment in the future of Australian river cruising and is hoped to attract international tourists to the region. Construction is set to begin in October 2025, with bookings expected to open in mid-2026.

Australian Sky’s maiden voyage will mark the first time a luxurious long-distance river cruise will be available in Tropical North Victoria (a name that Mildura has claimed for its region). The paddlesteamer will offer an exciting voyage, blending history with luxury while providing an intimate cruising experience, thanks to its exclusive small size.

Councillor Rebecca Crossling, who heads up economic development, events and tourism in Mildura, congratulated Murray River Paddlesteamers for securing the investment. She believes the initiative will boost domestic and international tourism in the area, introducing the Murray River to a new wave of visitors.

Guests aboard Australian Sky will have the opportunity to enjoy plenty of guided shore excursions, including trips to wineries, national parks, country towns and Indigenous cultural sites. Passengers will get to experience unique Aussie outback experiences, like riverside camping and dinner in a shearing shed.

Cruise fares will be all-inclusive and cover everything from meals and shore excursions to Wi-fi and selected beverages.

a paddlesteamer on the murray river victorian star
Murray River Paddlesteamers’ PS EmmyLou (Image via Shutterstock)

Support from APT

The significant investment in Australian Sky highlights the growing interest in Australian river cruising and the potential of the Murray River as a premier tourist destination. Despite the majority of popular river cruise destinations being located in Europe, it is hoped that the Murray River can mimic their success.

Support from Australia’s iconic travel group, APT, will no doubt help Murray River Paddlesteamers to create incredible itineraries for guests aboard their ships.

Burgess spoke to Cruise Passenger about the exciting partnership, saying, “APT are our partners in this project and they’re going to create a whole lot of brand-new Victorian tours based around the Australian Star and now the Australian Sky.”

Burgess stated that despite APT’s great success with European river cruising, their work in the Murray River will be “completely different to what they do in Europe.”

“We don’t think we have to live up to the European hype,” continued Burgess. “Australia river cruising is completely different. We have a little saying: no kids, no casinos, no castles. We’re in Australia- we want people to experience the outback, the sun, and all the nature that the river brings to the area.”

Burgess highlighted that while the first-class experience aboard the new ships will match the quality offered in Europe, it’s the immersive journey through the Outback that will truly set these cruises apart. This will be helped by APT’s renowned tours, which will help bring the Outback to life.

Speaking on APT, he said, “They’re a very proud Victorian business, but they don’t have any onshore touring in Victoria. That’s one of the key reasons they’re so excited.”

a bird wades on the murray river
The Murray River at sunset (Image via Shutterstock)

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