Recently, Hanwha Ocean and Samsung Heavy Industries were awarded the contract for the conceptual design of the U.S. Navy’s new logistics support ship (also known as the T-AOL, or Tactical Auxiliary Oil Tanker), with completion scheduled for the first quarter of 2027.
Hanwha Ocean will execute the project in partnership with U.S. shipbuilder Vard Marine US through Hanwha Philly Shipyard, which it acquired in late 2024, while Samsung Heavy Industries won the bid in a joint venture with General Dynamics NASSCO, the largest shipyard on the U.S. West Coast.
Although they have previously provided maintenance, repair, and overhaul (MRO) services for U.S. Navy logistics support ships, winning this concept design project marks the first time South Korean shipbuilders have directly participated in the construction process of a new U.S. Navy vessel. Through Hanwha Philly Shipyard, this also represents the first time a South Korean company has participated in the design of a U.S. Navy vessel using a local shipyard.
Hanwha Philly Shipyard (formerly Philly Shipyard), the subject of this contract, was acquired by Hanwha Ocean and Hanwha Systems for approximately $100 million and began full-scale operations in December 2024; it is the only U.S. shipyard owned by a South Korean company. The U.S. Byrnes-Tollefson Amendment prohibits foreign shipyards from building U.S. military vessels and major components, but Hanwha has effectively bypassed this legal restriction by acquiring the Philly Shipyard and establishing a local production base.
Unlike Hanwha, Samsung Heavy Industries does not own a U.S. shipyard; instead, it is partnering with NASSCO—which has experience building logistics support ships for the U.S. Navy—to bid on the contract. NASSCO is a subsidiary of General Dynamics, a major U.S. defense contractor, and has nearly 80 years of shipbuilding experience.In March of this year, Samsung Heavy Industries partnered with San Diego State University (SDSU) to establish its first R&D center in the United States—the “Samsung Heavy Industries–San Diego State University Advanced Maritime Center” (SSAM Center).
According to reports, the U.S. Navy plans to procure 13 new logistics support ships. Based on early estimates of $453 million per vessel, the total cost for the 13 ships is projected to exceed $5.6 billion (approximately 38.5 billion yuan).
The ships are designed to be smaller and more agile, tasked with providing refueling, resupply, and rearmament capabilities. The U.S. Navy emphasizes the use of off-the-shelf, proven commercial technologies to reduce costs, mitigate risks, and shorten the development cycle.
Moving forward, the U.S. Navy’s new logistics support ship program will gradually advance through the preliminary and detailed design phases, with the construction phase expected to be awarded through a separate tender.