[4] The iron-hulled ship was built at the yard of Blackwood & Gordon in Paisley, Scotland, for the Launceston & Melbourne Steamship Company,[1] at a cost of £17,000,[2] and launched on 4 April 1863.

At 368 gross register tons (GRT) and 177 ft (54 m) long she was built to carry passengers and cargo, and was powered by an 80 nhp steam engine[1] as well as sails on two masts.

[5] On 21 October 1863 the ship made a trial voyage from Launceston to George Town, with between 450 and 500 invited passengers aboard, who were lavishly entertained with free wines and refreshments, and music provided by the Volunteer Artillery brass band.

[4] She carried a crew of 23, and 25 passengers, and a general cargo that included mail, luggage, drapery, brandy, port, rum, cigars, tea, boots, and sheepwash.

[6] City of Launceston was rediscovered in 1980 by members of the Maritime Archaeology Association of Victoria, and became the first wreck to be listed and protected under the Historic Shipwrecks Act of 1981.