Portsmouth Naval Shipyard The Portsmouth Naval Shipyard ( PNS ) , often called the Portsmouth Navy Yard , is a United States Navy shipyard located in Kittery on the southern boundary of Maine near the city of Portsmouth , New Hampshire . It is used for remodeling and repairing US Navy submarines . The facility is sometimes confused with the Norfolk Naval Shipyard in Portsmouth , Virginia . History . Established on 12 June 1800 during the administration of President John Adams , the Portsmouth Naval Shipyard is the oldest continuously - operating shipyard in the United States Navy . It is situated on a cluster of conjoined islands called Seavey ' s Island in the Piscataqua River , whose swift tidal current prevents ice from blocking navigation to the Atlantic Ocean . The area has a long tradition of shipbuilding . Since colonial settlement , New Hampshire and Maine forests provided lumber for wooden boat construction . Commissioned here in 1690 , the " Falkland " is considered the first British warship built in the Thirteen Colonies . The Royal Navy reserved the tallest and straightest Eastern White Pine trees for masts , emblazing the bark with a crown symbol . During the Revolution , the was built in 1776 on Badger ' s Island in Kittery , and would be the first vessel to fly an American flag into battle . Even though she was captured and served in the British Navy , " Raleigh " has been depicted on the Seal of New Hampshire since 1784 . Other warships followed , including the launched in 1777 . Commanded by Captain John Paul Jones , it would be the first U . S . Navy vessel to receive an official salute at sea from a foreign power . When Secretary of the Navy Benjamin Stoddert decided to build the first federal shipyard , he located it where a proven workforce had proximity to abundant raw materials — Fernald ' s Island , for which the government paid $ 5 , 500 . To protect the new installation , old Fort William and Mary at the mouth of Portsmouth Harbor was rebuilt and renamed Fort Constitution . Commodore Isaac Hull was the first naval officer to command the Portsmouth Naval Shipyard , taking charge in 1800 until 1802 , and again in 1812 during the War of 1812 . The yard ' s first production was the 74 - gun ship of the line , supervised by local master shipbuilder William Badger and launched in 1814 . Barracks were built in 1820 , with Marine barracks added in 1827 . A hospital was established in 1834 . Architect Alexander Parris would be appointed chief engineer for the base . In 1838 , the Franklin Shiphouse was completed - - long , wide and measuring from floor to center of its ridgepole . It carried 130 tons of slate on a gambrel roof . It was lengthened in 1854 to accommodate the ( from which it took its name ) , the largest wooden warship built at the yard , and requiring a decade to finish . Considered one of the largest shiphouses in the country , the structure burned at 5 : 00 a . m . on 10 March 1936 . Perhaps the most famous vessel ever overhauled at the yard was the " Constitution " , also called " Old Ironsides , " in 1855 . Prisoners of war from the Spanish - American War were encamped in 1898 on the grounds of the base . In 1905 , construction began on the Portsmouth Naval Prison , a military prison dubbed " The Castle " because of its resemblance to a crenellated castle . It was the principal prison for the Navy and Marine Corps , as well as housing for many German U - Boat crews after capture , until it closed in 1974 . Also in 1905 , the Portsmouth Navy Yard hosted the Treaty of Portsmouth which ended the Russo - Japanese War . For arranging the peace conference , President Theodore Roosevelt would win the 1906 Nobel Peace Prize . Delegates met in the General Stores Building , now the Administration Building ( called Building 86 ) . In 2005 , a summer - long series of events marked the 100th anniversary of the signing of the treaty , including a visit by a Navy destroyer , a parade , and a re - enactment of the arrival of diplomats from the two nations . During World War I , the shipyard began constructing submarine s , with the " L - 8 " being the first ever built by a U . S . navy yard . Meanwhile , the base continued to overhaul and repair surface vessels . Consequently , the workforce grew to nearly 5 , 000 civilians . It would grow to almost 25 , 000 civilians in World War II when over 70 submarines were constructed at the yard , with a record of 4 launched in a single day . When the war ended , the shipyard became the Navy ' s center for submarine design and development . In 1953 , the would revolutionize submarine design around the world with its teardrop hull and round cross - section . It is now a museum and tourist attraction in Portsmouth . , the first nuclear - powered submarine built at the base , was launched in 1957 . The last submarine built here was the , launched in 1969 . Today the shipyard provides overhaul , refueling and modernization work . In 1994 , the shipyard was placed on the EPA ' s National Priorities List ( NPL ) for environmental investigations / restorations under CERCLA ( Superfund ) . In 2005 , the BRAC ( Base Realignment and Closure Committee ) placed the yard on a list for base closures , effective by 2008 . Employees organized the Save Our Shipyard campaign to influence the committee to reverse its decision . On 24 August 2005 , the base was taken off the list and continues operating under its motto , " From Sails to Atoms . " The shipyard earned the Meritorious Unit Commendation in 2005 . The MUC recognized the shipyard for meritorious service from September 11 , 2001 to August 30 , 2004 . Portsmouth Naval Shipyard accomplishments achieved during that period included completion of six major submarine availabilities early , exceeding Net Operation Results financial goals , reducing injuries by more than 50 percent , and exceeding the Secretary of Defense ’ s Fiscal Year 2006 Stretch Goal for lost workday compensation rates two years early . In addition to the Navy presence , the Coast Guard uses the Portsmouth Navy Yard as the home port for the medium - endurance cutters USCGC " Reliance " ( WMEC 615 ) , USCGC " Tahoma " ( WMEC - 908 ) , and USCGC " Campbell " ( WMEC - 909 ) . Boundary dispute . New Hampshire laid claim to the Portsmouth Naval Shipyard until the U . S . Supreme Court dismissed the case , asserting judicial estoppel . Had it been found to belong to New Hampshire , base employees ( and their spouses regardless of whether they themselves worked in Maine ) from that state would no longer be required to pay Maine income tax . Despite the court ' s ruling , New Hampshire ' s 2006 Session House Joint Resolution 1 reaffirmed its sovereignty assertion over Seavey ' s Island and the base . Notable ships built at shipyard predecessors . Piscataqua River region Badger ' s Island