Hanwha Philly Shipyard is in line for a $269 million Landing Ship build under the Navy and Marine Corps program, with options that could add three more vessels to the Philadelphia yard’s workload.
TOTE Services, Jacksonville, Fla., selected Hanwha Defense USA as the first shipbuilder under its Vessel Construction Manager contract for the program following a competitive request for proposals issued to qualified U.S. yards in July.
The initial award covers one vessel to be built at Hanwha Philly Shipyard. Construction is scheduled to begin in the fourth quarter of 2027.
TOTE said Hanwha was selected based on its pricing and acceptance of the subcontract terms and conditions.
“This award shows the speed at which the VCM model can move from RFP to contract,” said Jeff Dixon, president of TOTE Services. “Through a competitive process, we secured strong terms that benefit the government, along with build positions that allow construction to start in the fourth quarter of 2027.”
The award falls under TOTE’s $2.2 billion VCM contract supporting the Navy and Marine Corps’ planned Landing Ship fleet. The base contract covers as many as eight vessels, while the services ultimately envision a 35-ship fleet.
TOTE is continuing contract discussions with Bollinger Shipyards and Fincantieri Marinette Marine, both identified as directed shipyards under the VCM contract and expected to participate in the program.
The Landing Ship is intended to move Marines, vehicles, equipment, and supplies in littoral and island environments, giving the Marine Corps a smaller vessel for moving forces and equipment between shore locations.
The first vessel is expected to be delivered in 2030.
Hanwha acquired Philly Shipyard in 2024 and has since been preparing the yard for additional Navy and federal work. The Philadelphia facility has also built four National Security Multi-Mission Vessels under TOTE’s management, with the fifth vessel, Golden State, expected in 2027.
“Since acquiring Philly Shipyard in 2024, Hanwha has made significant investments in its workforce and technology to pave the way to build for the U.S. Navy and other federal customers,” said Michael Coulter, president and CEO of Hanwha Defense USA.
Hanwha Defense USA personnel have been working in Philadelphia this year to prepare the yard for naval construction, according to the company.
The award adds to a growing government workload at Hanwha Philly Shipyard. Earlier this month, TOTE selected the yard to build the first Missile Range Instrumentation Vessel for the Maritime Administration and Missile Defense Agency.
TOTE first used the VCM model on the five-vessel National Security Multi-Mission Vessel program for MARAD, overseeing shipyard selection, design, construction, testing, delivery, and lifecycle logistics.
