From the several alternative sites in East Java and based on proximity to supporting industries and infrastructures that already exist, the distance to economic centers and airports, the available land, as well as the affordable prices, Lamongan has been selected as the location of development of dock and shipyard industries in East Java. Development of shipyard industries in Lamongan is reviewed from is prospect, selected and began with repair and mintenance services for ships with classof facilities between 1000-3000 DWT. The class has not been a lot of competitors because of a new shipyard, easy technology and no experience. Based on the learning and experience process, for the future, 5 to 10 years, this shipyard can be expanded to accept new building similiar in size to barge technology which is not so so difficult and in order to master the modern technology . In addition, the permanent repair work has been done by increasing the capacity. Plan for 15 to 20 years, the shipyard can be expanded to accept new building for inter - islan ferries and tugboats, as well as repairs.