In January 1936 Fremantle was sold to scrap metal merchant J.E. Hall of North Fremantle for £120. Hall intended to beach the Fremantle alongside the wreck of the Kwinana in Cockburn Sound and to proceed to cut up both vessels for the scrap iron. But he was unable to give the authorities the guarantee that the work would be completed within the stipulated time, so he removed the boilers, machinery and fittings at Victoria Quay and towed the hulk out to be scuttled near the Stragglers Rocks. The Fremantle played an important role in the construction of the Fremantle inner Harbour particularly in the early stages when access was prevented by the presence of a rocky bar across the entrance in 1896. The Fremantle continued to work in the harbour for many years. Around 1908 it went upstream to dredge channels in Perth waters.