Alcantara was built by Harland & Wolff in Belfast, and launched in 1927. She ran the route from Southampton to the east coast of South America. In 1934 the ship was rebuilt with more powerful engines, increasing her top speed to 18 knots. She was converted to an armed merchant cruiser in 1939, and refitted with a single funnel. She was dispatched to Malta for further modifications, but was involved in a major collision with the Cunard ship Franconia en route. Alcantara managed to reach Alexandria for hull repairs.
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