It sounds like one of those barmy ideas dreamed up by an arts director after a night on the cheese, but so far the Casting Off ... A Coat For A Boat community project has been one of the most successful the Customs House has ever run.

The Mill Dam venue's visual arts director, Esen Kaya, who came up with the notion 18 months ago, said of her epiphany: "I realised every time I looked out of the window, I saw boats going by.

"I thought what's the most extraordinary thing to see in a contemporary gallery? A knitted coat for a boat."

Since February, the workshops in the Sandford Goudie Gallery on Saturdays between 10am and noon, have been a veritable hive of industry, with ladies knitting everything from seaweed to lobster pots.

Esen said: "It's been tremendously successful. Every week we've had new people coming on board – pardon the pun.

"We've had a fantastic regional group of knitters, but now the project has gone national and international.

"We have knitters from the Shetlands down to Southampton. We also have some knitted fish coming from Australia and New York.

"This project has touched so many people's hearts. I can't begin to explain how delighted I am."

This month the project reached a milestone when the actual fishing boat, called Salma's Dream, which the knitting is destined to cover, was brought into the Customs House for the first time.

Though only a test run, it did give some indication of how spectacular the exhibition in the Sandford Goudie Gallery will look come June 13.

Dave Parker, a director of the South Shields-based North East Maritime Trust, which built the vessel, said: "We wanted to involve ourselves with the community and this was a fantastic opportunity to do this, and that's what happened."

As for the building of the 21ft fishing coble, Dave said: "It was always going to be a challenge. It's going to be wonderful when it goes in the water."

Having heard tales of the industriousness of these workshops, it was fascinating to step on to the knitting factory floor and see what people were making.

My first shock came with the needles. Unlike the skinny ones I remember my mother knitting with, some of these were as big as oversized sticks of rock.

Margaret Quinn, a retired teacher of the deaf, from Boldon Colliery, was only too eager to show me how these behemoths worked.

"It's basic plain knitting with very large needles," she said. "They are a bit like barge poles. We are using various textures such as plastic strips, ribbon, old tights."

Sensing my confusion as to what they were creating, the mother of three made a statement I will probably never hear again as long as I live.

"We're all knitting sand."

"Sand?"

"Yes, sand."

Laughing off the idea that she and some of the ladies had been for a few sneaky gins, she went on to explain the appeal of the project.

"What started out as just a minor interest in being able to direct one's skills has grown into something purposeful and creative."

Looking around the room, Lilla Wren was conspicuous for being one of the only people stood up.

The nursery nurse, from Jarrow, explained why she was laying out long strips of knitting on the floor.

"I'm knitting the covers for the four oars, which will go on the boat when it's launched.

"I made them out of torn-up curtains and tie dyed them to look 'woody'. I think it's unique. I've met excellent people with some top skills."

This bringing together of disparate groups was something Ingrid Wagner, lead artist, felt was very important.

She said: "We've got traditional and contemporary knitters together. We've got all age ranges involved."

There were various examples of this cross-generational camaraderie, including Janet Barclay, a 34-year-old project manager, and daughter Anna, five.

Claire Kinsman, 33, a fine art student at Newcastle College, was also there with her nine-year-old daughter, Lauren, and said: "It's a great project.

"I've done projects in the past based on knitting. This just expands on what I've been doing before."

Though the knitting is projected to be finished by May 16, there is still time for people to get involved, as Ingrid explained: "If someone feels the need to knit a seagull at home, which we are short of, they can get in contact by calling Esen on 427 8199.

"Or you can come down on Saturday; knit, meet people and learn new techniques. You'll see this magnificent boat being put together."

As for the launch in July, as part of the Mouth of the Tyne festival, Ingrid gave this prediction: "It's going in with its knitted coat on, and there will probably be three people on board. I'm going to be on that boat, definitely."