Update: 7pm
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Marine Rescue NSW crews have found and recovered a submerged kayak they have been searching for in Jervis Bay for more than three hours.
Just before dark, around 5.10pm, the crew of JB 40 located the submerged craft off Hare Bay on the north-western edge of the Beecroft Peninsula.
But mystery still surrounds the kayakl and how it came to be upturned in the waters of the bay.
Marine Rescue regional commander Bruce Mitchell said the recovered kayak was in "pretty good condition."
"No one has reported such a craft missing,"he said.
"And we don't have any reports of people missing. It's all a bit of a mystery."
He said crew members had recovered the kayak and taken it to their home base at HMAS Creswell.
"They are trying to find a serial number on the vessel so officers from the NSW Police Marine Area Command in Sydney, who co-ordinated the search, might be able to find the owner of the craft," Mr Mitchell said.
"There is the possibility it has been stolen."
He said the craft was found not far from where the navy helicopter crew from Albatross had pinpointed the submerged vessel with GPS.
"It was hard for crews to find the craft in its submerged state," he said.
"The helicopter that had originally located the upturned kayak had to return to Albatross to refuel and then returned again to help the crew locate the craft."
He said the JB40 crew had struggled to recover the large kayak and get it on board the rescue vessel.
Police inquires into the matter are continuing.
Earler: 4.40pm
Search fails to find upturned kayak in Jervis Bay
Marine Rescue NSW crews haven't been able to find any trace of an upturned kayak in Jervis Bay.
A crew from a Royal Australian Navy helicopter from HMAS Albatross spotted the submerged kayak around 2pm on Wednesday afternoon, with Marine Rescue crews from Jervis Bay and Shoalhaven both tasked to the area.
Initial reports were the craft was outside Jervis Bay off Beecroft Peninsula, but that has since been refined to inside the bay at Hare Bay on the north-western edge of the Beecroft Peninsula.
Marine Rescue regional commander Bruce Mitchell said the search was being coordinated by NSW Police Marine Area Command in Sydney.
"We have Jervis Bay 40 searching as the operation is inside the bay," he said.
"The Shoalhaven vessel was called off after it was discovered the search area was not outside the bay, off Beecroft,
"We haven't been able to locate the craft. Apparently, it is under the surface, submerged."
The naval helicopter which initially spotted the craft and stayed in the area directing crews to the kayak has had to return to Albatross to refuel.
Despite being provided with a GPS location by the navy crew, Mr Mitchell said strong currents in the area and the craft being submerged, had proved a challenge for rescue personnel.
"Crews remain at the location and will continue to search this afternoon until we either find the craft or lose the light, whichever's first," he said.
He reiterated the fact the rescue service had not had any distress calls or had any vessels or people reported missing.
"One possibility we are exploring is that the craft might have been floating around for quite a while," he said.
"But until we actually locate it, we won't know."
He said if the search was terminated this afternoon it would be reassessed in the morning.
Earlier: 3.10pm
Navy helicopter directing marine rescue crews to upturned kayak
A Royal Australian Navy helicopter is directing Marine Rescue NSW crews to an overturned kayak inside Jervis Bay.
Marine Rescue regional commander Bruce Mitchell said the navy crew spotted the upturned kayak near Hare Bay,
Initial reports were the overturned craft was outside of the bay's entrance off Beecroft Penninsula.
"The helicopter has remained in the area and is directing our crews into the upturned kayak," Mr Mitchell said.
"At this stage we don't know what has happened.
"We have not had any distress calls and have not had any vessels or people reported missing."
Marine Rescue NSW volunteer crews were activated just after 2pm when the naval helicopter crew spotted the upturned kayak.
Marine Rescue rescue boats, Jervis Bay 40 and Shoalhaven, are en route to the location.
Earlier: 2.29pm
Marine rescue crews on way to overturned kayak off Jervis Bay
Marine Rescue NSW volunteer crews are responding to a report of an overturned kayak off the northern headland of Jervis Bay.
The kayak was spotted off the Beecroft Peninsula by Royal Australian Navy helicopter.
Marine Rescue search and rescue boats Jervis Bay 40 and Shoalhaven have been activated and are on their way to the location.