The salvage company that is dismantling an abandoned ship in Lake St. Louis has taken off the stern and one of the chimneys of the Kathryn Spirit.

Plans to tear apart the ship were first launched in 2011 but were stalled for a variety of reasons, including the bankruptcy of a Mexican company that was involved.

The Coast Guard then built a drydock around the vessel in order to prevent it from capsizing and creating even more of an environmental problem.

In December the federal government awarded a contract to break up the ship to Groupe St. Pierre, which began work several weeks ago by removing 500 tonnes of oil and other liquids.

Since then work has been proceeding apace, and is on track to be wrapped up by September.

Beauharnois mayor Bruno Tremblay said the chance of further environmental damage has passed.

"All the liquids are supposed to be removed before they start to cut the boat and all the liquids are under inspection at each time by the Coast Guard," Tremblay said.

The price tag of the entire operation, including building the embankment, now stands at $20 million.