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Posted: 2022-09-27 01:57:34

The operator of Sydney's ferries has denied a new vessel was in the path of a cruise ship in Sydney Harbour when it suffered a steering failure.

Three catamaran ferries have been withdrawn from service following the incident that occurred when the Fairlight vessel was travelling from Manly to Circular Quay just before 5pm on Monday.

Transdev managing director Loretta Lynch told ABC Radio Sydney there was no risk to passengers.

"The master immediately slowed the ferry and switched to backup steering, which really only takes a few seconds, regained full control of the vessel, and made sure what the issue was," she said.

"He assessed that it was best to return the vessel to the wharf. He dropped off the passengers."

A ferry wharf and high-rise buildings.
Services have been running close to a normal timetable on the Manly-Circular Quay route on Tuesday.(ABC Radio Sydney: Declan Bowring)

Ms Lynch disputed media reports that the Fairlight had been in the intended path of a cruise ship leaving Sydney Harbour.

"At all times, that ferry was well out of the path of other vessels, and it was never at any risk."

Ms Lynch said the vessels had been pulled from service as a precaution while the cause of the steering problem was investigated.

It is the second steering problem to hit the new Emerald Class fleet within days, with the Clontarf experiencing a failure on Sunday.

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