NSMV Program Nears Completion as White House Prioritizes Restoring American Shipbuilding Might

As the White House moves to bolster American shipbuilding, the U.S. Department of Transportation’s Maritime Administration (MARAD) marked a major milestone today with the keel laying of the fifth and final National Security Multi-Mission Vessel (NSMV).

The event at Hanwha Philly Shipyard marks the beginning of the end of a historic program that is helping to reshape the nation’s maritime training and emergency response capabilities.

Commissioned by MARAD and managed under the Vessel Construction Manager (VCM) model by TOTE Services, the NSMV program has so far delivered two state-of-the-art training vessels, with a third set for delivery later this year. The ships will serve as training platforms for future mariners while also doubling as disaster relief assets.

All five NSMV keels have been laid over the past 39 months, showcasing the effectiveness of the VCM model in streamlining ship construction. The vessels will replace aging training ships at the five state maritime academies—SUNY Maritime College, Massachusetts Maritime Academy, Maine Maritime Academy, Texas A&M Maritime Academy, and California State University Maritime Academy.

“This program is a testament to the strength of the U.S. maritime industry, and we are honored to work alongside TOTE Services and MARAD in delivering these advanced training vessels that will benefit generations of cadets to come,” said David Kim, CEO of Hanwha Philly Shipyard.

Graduates from state maritime academies supply over half of newly commissioned U.S. merchant marine officers annually, making these ships essential to the nation’s commercial and defense readiness. The NSMVs feature advanced training facilities, modern bridge equipment, and accommodations for 600 cadets and 100 faculty members, offering a world-class educational experience at sea.

The keel laying coincides with President Donald Trump’s announcement of a new White House Office of Shipbuilding and reports of an upcoming executive order aimed at boosting the sector. In Tuesday’s joint address to Congress, Trump emphasized the administration’s commitment to reviving domestic shipbuilding, unveiling plans for tax incentives aimed at restoring the industry’s competitiveness against foreign rivals.

“I am announcing tonight that we will create a new office of shipbuilding in the White House and offer special tax incentives to bring this industry home to America where it belongs,” Trump said.

The move comes as the administration is preparing measures targeting China’s dominance in the global shipbuilding sector. A 2024 USTR investigation found China’s state-backed policies have allowed it to command over 50% of global shipbuilding, severely impacting the U.S. maritime industry. In contrast, the United States position in global shipbuilding as plummeted in recent decades, with fewer than five ships constructed per year currently.

Hanwha Philly Shipyard, as the nation’s leading Jones Act shipbuilder, has played a critical role in the NSMV program initiated during President Trump’s first administration, with its recent acquisition by South Korea’s Hanwha Group signaling a new chapter in U.S. shipbuilding. The $100 million deal, finalized in December 2020, marked the first instance of a Korean shipbuilder establishing operations in the United States. Hanwha’s extensive expertise in naval systems and maritime technology is expected to strengthen the shipyard’s capabilities and competitiveness in commercial and government shipbuilding.

The shipyard, which has built approximately 50% of all large ocean-going Jones Act vessels since 2000, has an order backlog extending through 2027. However, sustaining operations beyond this period will depend on securing additional commercial and government contracts.

With two NSMVs delivered and three more under construction, the program is nearing its conclusion. Yet, the broader question remains: will the momentum created by the NSMV initiative translate into long-term growth for the U.S. shipbuilding sector?

The Biden administration’s trade investigations laid early groundwork for addressing China’s shipbuilding dominance, but it remains to be seen how effective Trump’s new White House Office of Shipbuilding will be in executing its vision.

For now, the NSMV program stands as a testament to what American shipbuilding can achieve when government and industry collaborate effectively. As the final vessel for Cal Maritime takes shape in Philadelphia, the maritime industry looks to Washington for the next wave of investment and policy support.