The Melbourne Star Observation Wheel, previously known as the Southern Star, has been a prominent feature of the Melbourne skyline since it opened in 2008. However, the wheel has faced various challenges over the years, including a forced closure just 40 days after opening due to design problems. The wheel was out of operation for almost five years as it was taken down and rebuilt. In September 2021, the company in charge of the wheel announced its immediate closure and liquidation due to the effects of the COVID-19 pandemic and changes in the surrounding area of Docklands.
Currently, options for salvaging the wheel parts are actively being considered, with liquidators working with a party to assess operational issues and potentially sell the assets. The 21 pods of the wheel were manufactured in Japan, while the supporting steel columns were made in Tasmania and the wheel structure was constructed in the Dandenongs. The wheel was listed for sale on the international market, but no successful offers have been made yet. There is potential for a market for pre-owned equipment, depending on factors such as acquisition costs, dismantling, transportation, and refurbishment.
Some industry insiders and officials believe that the wheel either needs to spin or be moved to a new location, such as opposite Crown where the views may be more desirable. However, there may be contractual and legal implications that make it difficult to relocate the wheel. The Docklands Chamber of Commerce president hinted that there may still be hope for the wheel’s future, while others, like the Victorian Chamber of Commerce and Industry CEO, emphasize the need for action regarding the wheel’s fate.
Estimating the value of the wheel’s individual pieces, particularly as scrap metal, is challenging. Metal recyclers and demolition firms provided some insights, with mild steel being valued at $350 per tonne. The estimated 1250 tonnes of steel in the wheel could potentially be worth around $437,500. However, the logistics of dismantling and transporting such a large structure present challenges, with VicRoads likely requiring special permits for transport. Despite the uncertainties surrounding the future of the Melbourne Star Observation Wheel, various parties are actively exploring options for salvaging and potentially selling its components.
