TOTE Services selected Hanwha Defense USA to build a Medium Landing Ship (LSM) for the U.S. Navy and Marine Corps in Philadelphia, marking Hanwha’s first contract to construct a vessel for the Navy.
The award covers one ship valued at $269 million, with options for three more. TOTE did not disclose a price for the options. The company said it opened bidding to qualified U.S. shipyards in July and selected Hanwha after considering its price and agreement to TOTE’s subcontract terms.
Hanwha’s October announcement described the award as its first Navy contract for vessel construction. In March, the company announced a separate Navy subcontract for market-survey and concept-design work on the Next Generation Logistics Ship program. The shipbuilding award and its terms were covered in EconoTimes’ earlier report on Hanwha’s TOTE award.
The selection falls under a Navy construction-management program. In July, the Navy awarded TOTE a separate $2.2 billion contract to oversee LSM construction. The Navy said the initial production effort covers up to eight ships, while TOTE describes the broader Navy and Marine Corps fleet plan as 35 vessels.
TOTE serves as the Navy’s prime contractor and oversees the shipyard agreements. The Navy says the approach uses commercial procurement practices to support delivery, cost discipline and the U.S. shipbuilding industrial base. TOTE says the program could give shipyards, suppliers, manufacturers and skilled trades a more reliable signal of future demand.
Hanwha acquired Philly Shipyard in 2024 and says it has invested in the yard’s workforce and technology. TOTE’s schedule puts construction start in the fourth quarter of 2027, and its announcement expects the program’s first vessel in 2030.
