Karrabee's career as a ferry came to an end with her sinking at Circular Quay, an incident which received extensive news media coverage.
Having just returned to service from an overhaul at the Urban Transit Authority's Balmain yard, on 22 January 1984, the Karrabee took part in the annual Great Ferry Boat Race.
With passengers crammed forward pushing her bow down, and the harbour chopping with the wash of pleasure craft following the race, the vessel took on water through a number of places.
She finished a distant third (she came first in the inaugural event in 1980).
The amount of water pouring into the vessel went unnoticed for some time, however, when Captain Archer realised what was happening, he took the ferry back early to Circular Quay.

With its nose dipping below the water, passengers were quickly disembarked at Wharf 4, and the ferry quickly sank as the last of the passengers alighted onto the wharf.
It was raised two days later by the floating crane Titan.
She was towed out of Circular Quay and  laid up while investigations into the sinking took place.
Ultimately the cause of the sinking was found to be a buildup of rubbish around the bilge pump inlet that restricted the ability of the pumps to clear the water.
Karrabee's career as a ferry came to an end with her sinking at Circular Quay, an incident which received extensive news media coverage. Having just returned to service from an overhaul at the Urban Transit Authority's Balmain yard, on 22 January 1984, the Karrabee took part in the annual Great Ferry Boat Race. With passengers crammed forward pushing her bow down, and the harbour chopping with the wash of pleasure craft following the race, the vessel took on water through a number of places. She finished a distant third (she came first in the inaugural event in 1980). The amount of water pouring into the vessel went unnoticed for some time, however, when Captain Archer realised what was happening, he took the ferry back early to Circular Quay.
With its nose dipping below the water, passengers were quickly disembarked at Wharf 4, and the ferry quickly sank as the last of the passengers alighted onto the wharf. It was raised two days later by the floating crane Titan. She was towed out of Circular Quay and  laid up while investigations into the sinking took place. Ultimately the cause of the sinking was found to be a buildup of rubbish around the bilge pump inlet that restricted the ability of the pumps to clear the water.
Karingal and Karrabee