Kaiser Richmond (CA) Shipyard During World War II
BY STAS MARGARONIS
IN THIS REPORT:
- WILL SOUTH KOREA MAKE AMERICAN SHIPBUILDING GREAT AGAIN (MASGA)?
- GCAPTAIN REPORTS BAD NEWS ON SHIPBUILDING
- ROLE MODEL: SOUTH KOREA’S HYUNDAI SAMHO
- SHIPS ACT
- WORLD WAR II SHIPBUILDING MOBILZATION
- THE LIBERTY SHIP
- SHIPS FOR VICTORY
- KAISER AND BECHTEL SPEARHEAD SHIPBUILDING MASS-PRODUCTION
- U.S. CEDES ITS SHIPBUILDING LEADERSHIP TO JAPAN
- STEPS TO REVITALIZING U.S. SHIPBUILDING
On July 31st South Korea announced that as part of a new tariff and trade deal with the United States that it would invest $150 billion to Make American Shipbuilding Great Again (MASGA).
While this would be a huge shot in the arm for U.S. shipbuilding, there are many unanswered questions about this investment.
WILL SOUTH KOREA MAKE AMERICAN SHIPBUILDING GREAT AGAIN (MASGA)?
The $150 billion pledge by South Korea should focus on building new shipyards and offers the best hope for the United States to partner with a world-class shipbuilder.
However, analysts have expressed skepticism about the feasibility of Seoul’s investment pledge and cautioned that rebuilding America’s shipbuilding capacity would likely be a long and challenging process, according to South Korean news media reports.[1]
Wu Jialu, a chief analyst of industrial research at China International Trust Investment Corporation (CITIC) Futures, told the South China Morning Post (SCMP) that the US$150 billion investment may prompt South Korean shipbuilders to build or acquire shipyards in the U.S., providing talent and technological support.
South Korean firms could help improve the competitiveness of the U.S. shipbuilding industry, particularly in the construction of high-value-added vessels, but reviving the whole industry would still be a protracted process due to supply chain and capacity limitations, she said.
The full impact of the U.S. port fees being assessed by the U.S. Trade Representative on Chinese built ships has yet to become clear, and future market trends would also depend on fleet renewal and upgrading demand, Wu told the SCMP.
South Korean President Lee Jae-myung is quoted as stating that US$150 billion of the promised investment would be dedicated to shipbuilding. The capital would provide “solid support” for South Korean companies entering the U.S. shipbuilding industry, Lee wrote in a Facebook post.[2]
The wider US$350 billion investment package was intended to solidify bilateral cooperation in strategic industries, including semiconductors, he added.
South Korea clarified in a media briefing that the promised funds would not come in the form of direct equity investments, but “will primarily consist of loans and guarantees.”
Media outlets in South Korea reported that Seoul had proposed a multibillion-dollar project to Washington named “Make American Shipbuilding Great Again” during their trade negotiations, which would involve large-scale investments in the U.S. by Korean shipbuilders and government financial support measures.[3]
State-run entities like the Export-Import Bank of Korea and Korea Trade Insurance Corporation were being considered for involvement in the investment, South Korea’s Yonhap News Agency reported.[4]
GCAPTAIN REPORTS BAD NEWS ON SHIPBUILDING
A July 15th post by gCaptain publisher John Konrad, a supporter of President Donald Trump, now casts serious doubts on the Trump administration’s commitment to shipbuilding, under the headline “BREAKING NEWS: Massive shipbuilding changes in DC. None of them good,” Konrad reported:
- @gCaptain “has confirmed from a White House source that Trump has closed the shipbuilding office at the NSC (National Security Council).” Reuters reports that Ian Bennitt, the President’s Special Assistant for Shipbuilding at the White House, has been fired.
- Favored candidates for Provost and Superintendent positions at the U.S. Merchant Marine Academy have received denial notices.
- At a recent USNI (U.S. Naval Institute) shipbuilding conference, it became clear: major shipbuilding primes are actively fighting plans to expand commercial shipbuilding.
- Sources inside the Pentagon say Admirals … are digging in their heels on several key shipbuilding objectives.
- Some Jones Act companies now expressing fear that building new ships could devalue their current fleets.
- Congressional sources say progress on the SHIPS Act is stalling in committee …
- We’ve confirmed that the French billionaire who offered to invest $20B in U.S. shipping sent a letter to Trump saying he’s not getting the support he needs to move forward.
- The U.S. Coast Guard is slashing cutter orders left and right.
- Reports from my sources in Korea say the new far-left, pro-China president is chilling U.S.-Korean shipyard cooperation.
- Nobody has seen or heard from @SecDuffy ’s new acting Maritime Administrator. The plan to centralize shipbuilding under the Department of Commerce is apparently stalled or stalling. I spoke with half a dozen senior sources in DC—every single one is frustrated.
- Yes, there’s still optimism around @SECNAV’s commitment to shipbuilding but his plate is full with emerging priorities
- Not a single Admiral has publicly supported the SHIPS Act or the White House’s “Restoring America’s Maritime Dominance” plan.
- Deadlines are being missed or pencil-whipped on the Maritime Executive Order, and with the NSC shipbuilding office closing, no one knows how the next deadline will be met.
- Zero follow-through on Trump’s State of the Union promise to open a dedicated White House shipbuilding office.
- New intel confirms more Navy shipbuilding delays, including further slippage in carrier programs.[5]
ROLE MODEL: SOUTH KOREA’S HYUNDAI SAMHO
Hyundai Samho Shipyard, South Korea (Photo: HD Hyundai)
If South Korea does make good on its promises to invest in U.S. shipbuilding, the investment focus should be on building new shipyards in the United States and supporting the growth of shipbuilding infrastructure that includes engines, propellers, shafts, hatch covers, steel plate etc.
The Hyundai Samho Shipyard in South Korea should be a role model for new U.S. shipyards (pictured). The shipyard occupies 3,300,000 m2 which is 815 acres and employs 3,900 direct employees. HD Hyundai Samho is capable of building approximately 40 ships annually.
According to Hyundai Samho Heavy Industries, the shipyard utilizes four facilities to build ships:
- Dock # 1 (504 x 100 x 13 meters) can construct up to 800,000 deadweight tons (DWTs). Deadweight tonnage is the total weight of cargo, fuel, crew, and other supplies that a ship can carry safely.
- Dock # 2 (594 x 104 x 13m) can construct up to 1,000,000 DWTs
- Number One Berth Dock (524 x 65) can construct up to 500,000 DWTs.
- Floating Drydock (335 x 70 x 24) can construct 80,000 tons (lifting)
Mega ‘Goliath Cranes’ at the shipyard shift huge steel block sections into the docks and are deployed as follows:
- 2 X 600-ton cranes are at Dock # 1
- 1 x 820 -ton crane & 1 x 1,000 tons at Dock # 2
- 1 X 1,200-ton crane at the No.1 Berth Dock.[6]
SHIPS ACT
Enactment of the bi-partisan supported SHIPS Act will be “a tight squeeze” for Congress in 2025, further delaying investments in shipbuilding, according to Charles Papavizas, a maritime attorney with the firm of Winston and Strawn.
The Trump administration and Congress should be making the SHIPS Act enactment a top priority, because it will create a new 250 U.S. ship flag fleet.
The legislation was proposed by Senator Mark Kelly (Democrat-Arizona), a graduate of the United States Maritime Academy and Republican Senator Todd Young of Indiana. In the House it was introduced by John Garamendi (D-California) and Congressman Trent Kelly (R-Mississippi) It has support on both sides of the political aisle.
Senators Kelly and Young argue: “There are currently 80 U.S.-flagged vessels in international commerce while China has 5,500. The SHIPS for America Act aims to close this gap and boost the U.S. Merchant Marine by establishing national oversight and consistent funding for U.S. maritime policy, making U.S.-flagged vessels commercially competitive in international commerce by cutting red tape, rebuilding the U.S. shipyard industrial base, and expanding and strengthening mariner and shipyard worker recruitment, training, and retention.” [7]
Papavizas notes that the U.S. Maritime Administration’s ship financing program, the Title XI program, “is not likely to be very useful in providing ship financing.”
Papavizas says that if the SHIPS ACT is enacted and sufficiently funded, it is proposed to acquire and build 250 U.S. flag vessels: “Initially the new shipowners will be able to reflag 10 foreign-built ships of a maximum age of 14 years for the first three years which then goes up to 15 ships in the following years. However, the owners will also need to order a similar number of newly-built ships from U.S. yards and with a goal of 250 ships.”
The size of these orders should attract new shipbuilders from U.S. allies “such as Japan and South Korea maybe Singapore to establish new shipyards in the United States since the existing U.S. yards cannot grow easily. This will offer a new opportunity for foreign shipbuilders to build ships at new U.S. shipyards to meet the shipbuilding target market of 250 ships provided under the SHIPS ACT.”[8]
WORLD WAR II SHIPBUILDING MOBILZATION
Before it allowed its shipping industry and shipbuilding to decline, the United States pioneered mass-production of ships during World War II.
During the period of 1939-1945, 5,777 ships including Liberty ships, Victory ships, tankers, and military ships were constructed at U.S. shipyards.
The shipbuilding program produced a Liberty ship that could transport 10,800 deadweight tons (the weight of cargo a ship can carry). In total, the 2,708 Liberty ships that were built collectively generated the capacity to transport 29,246,400 tons of weapons, food and supplies to European and Asian military theaters that helped win World War II.
The shipbuilding program employed 650,900 American workers. African Americans and women were employed by the shipyards in large numbers and the shipbuilding employment boom helped pull the United States out of the Great Depression financed by federal war orders.
It may be time to review that success and why it may be relevant in 2025.[9]
THE LIBERTY SHIP
The centerpiece of the U.S. shipbuilding success was the construction of 2,708 Liberty ships that were primarily built between 1942 and 1945. According to the Smithsonian, the first ships required about 230 days to build while the average construction time eventually dropped to 42 days, with three new ships being launched each day in 1943.
The mass-production success was due in large part to the ability of the U.S. Maritime Commission (today the U.S. Maritime Administration – MARAD) to mobilize new and existing shipyards to support the mass production of ships.[10]
SHIPS FOR VICTORY
In his seminal history, Ships for Victory: A History of U.S. Shipbuilding under the U.S. Maritime Commission in World War II, Frederic C. Lane detailed how new and existing shipyards were mobilized to mass produce the ships that helped win World War II.
The shipbuilding effort was one of the most outstanding achievements of President Franklin Roosevelt’s Administration and a stunning display of industrialization that helped reverse the tide of World War II.
The U.S. shipbuilding effort was directed by Admiral Emery Land, Chairman of the U.S. Maritime Commission and by Vice Chairman and Vice Admiral Howard Vickery. Land had a long-standing relationship with Roosevelt dating back to World War I. Land was also instrumental in overseeing the establishment of the United States Merchant Marine Academy at Kings Point, New York.[11]
KAISER AND BECHTEL SPEARHEAD SHIPBUILDING MASS-PRODUCTION
Lane describes how new and innovative shipbuilding methods were deployed, thanks in part to new shipbuilders that included the Kaiser and Bechtel construction companies.
Both Henry Kaiser and Warren Bechtel had previously worked together on the mammoth Hoover Dam project that helped bring electrification to America’s Southwestern states. The construction of the Hoover Dam required temporarily re-directing the Colorado River. The river diversion around the dam site was constructed “through four 50-foot-diameter tunnels, two drilled through the canyon walls on each side of the river.”
As mass production took hold in the shipbuilding industry, Henry Kaiser soon emerged as one of the leaders in the mass-production effort, possibly because he was not a traditional shipbuilder and approached the problem with a fresh perspective. Kaiser built new shipyards in California, Oregon and Washington.
The original Liberty ship was based on a British design that was reengineered to accommodate shipyard workers with little to no shipbuilding experience. The U.S. firm of Gibbs and Cox modernized the British design and provided more detailed drawings to allow for novice workers to follow the construction plans.[12]
A 2007 Professional Mariner report noted: “In their (Kaiser) shipyards, bow units, stern units, deckhouses, and other major sub-sections were pre-assembled and then welded together to form the ship. This approach resulted in ever-shorter delivery times.”
U.S. CEDES ITS SHIPBUILDING LEADERSHIP TO JAPAN
One of the early examples of American companies outsourcing technology abroad occurs in U.S. shipbuilding.
American shipowner and shipbuilder Daniel Ludwig, owner of National Bulk Carriers helped modernize Japanese shipbuilding after World War II. Ludwig relocated from the United States because of drydock limitations at his Virginia shipyard and the cutbacks in U.S. government subsidies. During World War II, Ludwig built so-called jumbo T-3 tankers of 18,000 tons, 2,000 tons bigger than the T-2 and T-3 tankers being built at U.S. shipyards. Ludwig was attracted to Japan by its skilled work force, low wages, and the presence of the large drydock at Kure, which was used to build the Japanese mega-battleship Yamato. NBC brought U.S. modular shipbuilding and welding systems for use in building its ships in Japan but was required by its Japanese government agreement to make its technology and expertise available to competing Japanese shipbuilders.[13] The result was that when the Suez Canal was shut in 1956 by military hostilities, Japanese builders were positioned by NBC to build and sell large tankers to circumnavigate the coast of Africa and deliver Middle Eastern oil to Europe and the United States, transforming Japan into a leading shipbuilder.[14]
STEPS TO REVITALIZING U.S. SHIPBUILDING:
- Assume the price tag is $100 billion or more amortized over 10 years
- Target building 100 ships per year
- Enact and fund the SHIPS Act in 2025
- Utilizing South Korea’s $150 billion pledge to invest in U.S. shipbuilding, construct 3 new shipyards on the Pacific, Gulf and Atlantic Coasts utilizing 750-1,000 acres each to establish global best practices based on the Hyundai, Samho model. Partner with Japan and South Korea to create new shipbuilding entities and utilize them as hubs for best practices and dissemination to other shipyards. Produce commercial and naval ships.
- Restore Food for Peace program, which previously provided essential cargo for U.S.-flagged ships along with the U.S. Agency for International Development (USAID).
- Empower the U.S. Maritime Administration to develop a national shipbuilding mobilization including shipbuilders from Japan and South Korea just as Admiral Land did during WWII.
- Target and build production of key ship components: engines, steel plate, piping, propellers, hatch covers, etc.
- Rescind shutdowns of offshore wind projects so as to revive demand for ships, tugs, supply vessels, laydown and assembly yards and new vessel and floating wind turbine constructions
- Expand U.S. Marine Highway supports for U.S. coastal shipping utilizing new U.S. built feeder ships (3,000 twenty-foot unit containerships) as well as RoRos and tankers. Ships can replace tucks for some coastal long-hauls sailing between U.S. ports. Ship orders might be guaranteed by the U.S. Navy’s Military Sealift Command to facilitate financing.
- Explore vessel automation developed by Orca-AI, Vard and others to reduce crewing and alleviate mariner shortage challenges
- Mobilize U.S. maritime schools and maritime unions supported by new scholarships to recruit and train deck and engine crew members
- Fund U.S. community colleges, trade schools, labor union apprentice programs to train welders, pipe fitters, crane operators, electricians, etc.
- Offer undocumented Americans guaranteed U.S. citizenship if they qualify to work at a U.S. shipyard or for a U.S. flag vessel. The result will be encouraging a flood of new people to work in shipbuilding and on ships
FOOTNOTES
[1] https://www.koreatimes.co.kr/business/companies/20250731/make-american-shipbuilding-great-again-project-touted-as-key-contributor-to-tariff-deal
[2] https://www.scmp.com/economy/china-economy/article/3320297/behind-trumps-south-korea-deal-plan-transform-global-shipbuilding
[3] https://www.koreatimes.co.kr/business/companies/20250731/make-american-shipbuilding-great-again-project-touted-as-key-contributor-to-tariff-deal
[4] https://www.scmp.com/economy/china-economy/article/3320297/behind-trumps-south-korea-deal-plan-transform-global-shipbuilding
[5] https://x.com/johnkonrad/status/1945308143212249566
[6] HD Korea Shipbuilding & Offshore Engineering (2025)
[7] https://www.young.senate.gov/newsroom/press-releases/young-kelly-introduce-legislation-to-make-american-ships-again/
[8] https://www.ajot.com/insights/full/ai-winston-strawns-papavizas-says-proposed-ships-act-could-create-u.s-shipbuilding-boom-if-congress-acts
[9] https://www.ajot.com/insights/full/book-review-ships-for-victory-how-the-us-pioneered-the-mass-production-of-ships
[10] https://www.ajot.com/insights/full/book-review-ships-for-victory-how-the-us-pioneered-the-mass-production-of-ships
[11] https://www.ajot.com/insights/full/book-review-ships-for-victory-how-the-us-pioneered-the-mass-production-of-ships
[12] https://www.ajot.com/insights/full/book-review-ships-for-victory-how-the-us-pioneered-the-mass-production-of-ships
[13] Jerry Shields, The Invisible Billionaire: Daniel Ludwig, (1986)
[14] https://rbtus.com/review-how-u-s-shipbuilder-daniel-ludwig-modernized-japanese-shipbuilding/