To meet this demand, the US shipbuilder W.A. Bechtel Co. decided to build a shipyard at a former Northwestern Pacific Railroad repair yard situated at Richardson's Bay in Marin County, at the north end of Sausalito, California and just three miles (5 km) north of the Golden Gate Bridge.
Six ship launching ways were planned, but the old repair yard, purchased from Southern Pacific Railroad, and located at the base of Spring Street, was found to have inadequate space to accommodate this need.