Hanwha Philly Shipyard Wins First Contract for Navy Medium Landing Ship

TOTE Services has selected Hanwha Defense USA (HDUS) to build the first vessel in the U.S. Navy and Marine Corps’ Medium Landing Ship (LSM) program. The $269 million award, executed under TOTE’s role as Vessel Construction Manager (VCM), covers the construction of one LSM at Hanwha Philly Shipyard with options for three additional ships.

The selection marks the first shipyard award under a $2.2 billion VCM contract intended to support a planned 35-ship fleet. While Hanwha Philly Shipyard has secured the initial build, TOTE Services confirmed it is continuing contract discussions with Bollinger Shipyards and Fincantieri Marinette Marine, both of which are designated as directed shipyards under the program and are expected to contribute to the fleet’s expansion.

Expanding the VCM Model

The LSM program represents a significant expansion of the VCM model, which TOTE Services pioneered during the National Security Multi-Mission Vessel (NSMV) program for the U.S. Maritime Administration. By acting as a single accountable management structure between government requirements and shipyard execution, TOTE aims to apply commercial shipbuilding efficiencies to military procurement. This approach is designed to accelerate delivery timelines and enforce cost discipline through standardized configurations and block-buy pricing.

For the U.S. shipbuilding industrial base, the program’s structure provides a more consistent demand signal than traditional naval procurement. By distributing the workload across three domestic shipbuilders, the Navy is effectively building a distributed production line. This allows yards like Hanwha Philly Shipyard to leverage established supply chains and an experienced workforce to begin construction rapidly, with the first LSM expected for delivery in 2030.

The award also solidifies Hanwha’s position within the U.S. defense infrastructure following its acquisition of the Philadelphia yard. The ability to secure a lead role in a multi-billion dollar landing craft program suggests that the yard’s commercial heritage is being viewed as a strategic asset for the Navy’s goal of rapid, repeatable vessel production. TOTE Services issued the request for proposals to qualified yards in July 2026, following the successful delivery of four of the five NSMV vessels currently under its management.

Source: marinelink