TOTE Services has selected Hanwha Defense USA to build one U.S. Navy and Marine Corps Landing Ship Medium at Hanwha Philly Shipyard under the service’s Vessel Construction Manager model. The selection covers one ship valued at $269 million and includes options for three additional vessels, according to Naval News’ report citing Hanwha Defense USA.
Construction is scheduled to start in the fourth quarter of 2027, and the first vessel is now expected to be delivered in 2030, the report said. That is later than the 2029 delivery target the Navy had previously announced, according to Breaking Defense’s account of the award.
The award makes Hanwha Defense USA the first shipbuilder selected by TOTE for the LSM program and marks HDUSA’s first U.S. Navy shipbuilding contract. TOTE, rather than Hanwha, serves as the vessel construction manager and prime contractor with direct contractual oversight of construction and delivery, Breaking Defense reported. The $2.2 billion VCM contract supports a planned 35-ship LSM fleet, but this award commits one ship; the three additional vessels remain options rather than confirmed orders.
The selection does not mean Hanwha will build the program’s initial LSM. Breaking Defense reported that the Navy had previously tapped Bollinger Shipyards to construct the initial vessel and awarded Fincantieri Marinette Marine long-lead-material work for another four ships. TOTE said both companies were still expected to play meaningful roles in building the fleet.
Hanwha Philly Shipyard has built and delivered four National Security Multi-Mission Vessels under the VCM model with TOTE Services, according to Naval News’ account of Hanwha’s statement. The current announcement establishes a shipyard selection and planned production start—not a delivered or operational ship—with the first vessel’s documented delivery schedule extending to 2030.