On 30 June 1888 the Alhambra collided with the derelict it was towing to Broken Bay. Knocking a hole in its side, Alhambra sank in an hour and a half and had to be abandoned.
The 766-ton iron screw steamer was built in 1853 by Samada Brothers in Middlesex, Millwall, UK. The vessel was used for port services and mastered by Captain Summerbell.