In 1991 Dr. Leo Barnes, the General Secretary of the National Union of Seafarers of India approached the Foundation to set up a Navik School for the sons of seamen in response to a resolution passed at the General Body Meeting of his Union. The Governing Council of the Foundation accepted the above proposal and a Memorandum of Understanding was signed between both the trusts on 20th January 1994 on the understanding that NUSI would bear the entire construction cost of the School.

Thereafter in May 1997 in the midst of the construction it was decided to convert the Navik School into a Pre Sea Academy. The original scheme was modified and the Memorandum was converted into an Agreement on 10th December 1997.

The Academy was completed in September 1999 and named as Dr. Leo Barnes Pre Sea Academy. On taking possession of the Academy the entire Pre Sea Training of "Rahaman" which consists of short term courses for Navigating Officer Cadets, Ratings and Saloon Ratings has been shifted to the Academy which was inaugurated on 19th February 2000.

Later in the year due to differences between the parties on the interpretation of the Agreement, it was terminated and a new Memoranda of Association (MOA) was signed on 4th August 2000