As Dunedin grew, and particularly with the increase in commerce that developed following the Otago Gold Rush of the 1860s, the merchants of Dunedin pushed for dredging of a channel to allow ocean-going vessels to reach the city's wharves. Though a contentious decision, it was agreed to dredge what became known as the Victoria Ship Channel along the north-western side of the harbor. The channel was finally opened in 1881. The initial channel was narrow and shallow, and did not get off to an auspicious start, as the Union Steam Ship Company's SS "Penguin", the first ship to use it, was temporarily grounded while using it. As finance allowed, the channel was gradually widened and deepened, and by 1907, twice as many ships were using Dunedin's wharves as used Port Chalmers. Compensating to some degree for the opening of the Victoria Ship Channel ship servicing and building industries developed in Port Chalmers while the adjacent Carey's Bay became a fishing port.