TOTE Services selected Hanwha Defense USA, which operates from the Philadelphia Shipyard, to build the U.S. Navy’s first Medium Landing Ship under a $269 million contract. The award covers one vessel and provides options for three more. It was made through TOTE Services’ Vessel Construction Manager contract for the Navy and Marine Corps, with construction able to begin in the fourth quarter of 2027.
What it means
Hanwha Defense USA was chosen after a competitive solicitation involving qualified U.S. shipyards. TOTE Services selected the company based on its pricing and its acceptance of subcontract terms and conditions.
The base program includes up to eight new vessels. TOTE Services remains in contract discussions with Bollinger Shipyards and Fincantieri Marinette Marine, which are directed shipyards under the Vessel Construction Manager contract.
The award is Hanwha’s first contract to construct a U.S. Navy warship since it acquired the Philadelphia yard in 2024. Rep. Mary Gay Scanlon said the selection supports Navy and Marine Corps efforts to rebuild U.S. shipbuilding.
Key facts
- $269 million contract value.
- One Medium Landing Ship is covered by the award.
- Three additional vessels are available as contract options.
- Construction can begin in the fourth quarter of 2027.
- The base program includes up to eight new vessels.
- Hanwha acquired the Philadelphia Shipyard in 2024.
- Bollinger Shipyards and Fincantieri Marinette Marine are directed shipyards under the Vessel Construction Manager contract.
Source: Pennsylvania Business Report, reporting a TOTE Services contract award