Revitalizing the Twin Ports: Potential Impact of Philly Shipyard Investment
With the promise of tens of billions of dollars of investment from D.C., places like Philadelphia are seizing the opportunity. But what about other cities, like the Twin Ports? Today, Washington sees the efforts underway in Philadelphia to revitalize Philly Shipyard and hire more residents in the shipbuilding industry as a cornerstone of the effort to resurrect U.S. shipbuilding.
Philadelphia is one of only two U.S. shipyards still building commercial ships, with China dominating the industry. The Trump administration has discussed bringing shipbuilding back to the U.S. by imposing port fees on Chinese-built ships and mandating some U.S. exports to be moved on U.S. vessels.
Philadelphia’s shipyard is now under the ownership of Hanwha, a Korean company that acquired the facility in 2024. Hanwha’s CEO, David Kim, expresses optimism about scaling up production if orders for more ships are received, bringing new technology and expertise to the U.S.
Improvements in the commercial shipbuilding sector are believed to benefit U.S. Navy shipbuilding as well. Hanwha Ocean Company’s $100 million acquisition of Philly Shipyard last year was praised by U.S. Navy officials, with a recent $60 billion Navy maintenance contract further solidifying the shipyard’s future.
Despite a strong order backlog, Philly Shipyard has faced challenges due to labor shortages and supply chain disruptions caused by the pandemic. However, the company is implementing continuous improvements based on lessons learned from past projects, such as the construction of NSMV 1.
Hanwha Philly Shipyard aims to create local jobs, expand capabilities, and enter new markets. Taeho Ryu, previously with Hanwha Corporation, has taken on the role of CFO in the shipyard’s new management lineup, signaling a commitment to growth and success.
