The Yelcho was built in 1906 by the Scottish firm Geo. Brown and Co. of Greenock, on the River Clyde for towage and cargo service of the Chilean Sociedad Ganadera e Industrial Yelcho y Palena, Puerto Montt. In 1908 she was sold to the Chilean Navy and ordered to Punta Arenas as a tug and for periodic maintenance and supply of the lighthouses in that region.