Philly Shipyard has been tapped to build merchant marine academy training ships, snapping the yard's year-long newbuild cold streak.

Wednesday, the US Maritime Administration announced that Florida-based TOTE Services had selected the Oslo-traded, Philadelphia-based shipyard to build up to five of the new ships, known as National Security Multi-Mission Vessels.

"Investing in maritime education creates more American jobs," said Maritime Administrator Mark Buzby.

"By the selection of Philly Shipyard, Inc., as the construction shipyard for the NSMV, this effort is not only bolstering the US Merchant Marine, but the US economy and vital transportation infrastructure as well."

Philly Shipyard spent much of 2019 idle after finishing two boxships for Matson, both of which lost the ailing yard money. It also had to cancel construction for two TOTE ships.

The company — bleeding more than $1m a month during its idle period — shifted its focus to trying to secure government contracts.

"Going forward, we will have to combine government projects with commercial shipbuilding," chief executive Steinar Nerbovik told TradeWinds last year. "We have to enter this new arena, too."

In October, it said it would secure a contract to perform repair work on two US government-owned fast supply ships.

The NSMVs will be built for the US's six state maritime academies, including training space, lab space and ro-ro capabilities to help at least 600 cadets learn at a time.

The ships will also be used in response to national and international disasters.

Last May, the Maritime Administration selected TOTE as the vessel construction manager for the NSMVs.

The contract will be to construct between one and five of the vessels.

The Maritime Administration received $300m to contribute to the program in the 2020 federal budget.