The Lady Jillian is a 38.5m, 226 tonne auxiliary ketch that carried cargo between Flinders Island, Launceston and Victoria.
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Mr Dick said he bought the ship about a decade ago and has spent the past five years collecting material to convert it to a four-star tourist ship.
He expects the job to be done by July 1, complete with 12 cabins and room for 38 passengers.
The Lady Jillian is one of about eight ships owned by Mr Dick moored near Home Point on the Tamar River.
He faces an April 30 deadline from Marine and Safety Tasmanian to have the vessels in survey (seaworthy and registered) or relocated or face seizure and disposal.
Mr Dick said the State Government needed more vision because the ships were part of Australia's seagoing history and the area had potential as a maritime precinct.
Infrastructure Minister Jim Cox said Marine and Safety Tasmania was last year given new powers to deal with abandoned, sunk or unseaworthy vessels in response to community concerns about the vessels at the old Kings Wharf.
Mr Cox said owners had until April 30 to put their vessels back in survey or relocate to a safe berth.
"If any owner of such vessels believes their vessels to be worth restoring, the State Government is giving them time to take action," Mr Cox said.
Acting Launceston Mayor Jodie Campbell said the council was happy to look at new ideas.
Mr Dick said the Lady Jillian was particularly important because it was the last of its type and was a "beautiful thing".
He said the ship was built in South Australia in 1948 as a munitions carrier and worked the Furneaux Group for 40 years.
Mr Dick said the ship was included in the London- based Lloyd's Register of Shipping until about six years ago.
He said the steel-hulled ship was clad with thick jarrah planking under the waterline and 7.5cm celery- top pine planks on the deck and heritage features throughout.
It had two masts carrying eight sails, a 500hp diesel motor and a wide, flat hull design giving it stability and the ability to beach itself for loading.
"We have to allow these vessels to survive until their time comes," he said.
"She is a beautiful thing, it will just knock them (tourists) out.
"The city of Launceston should be promoting this area as a place to do up boats.
"It's only blokes like me that preserve the maritime heritage of Australia and there ain't many of us."
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