Bethlehem Shipbuilding San Pedro was a major shipbuilding company on Terminal Island in San Pedro, California owned by Bethlehem Shipbuilding Corporation. To support the World War 2 demand for ships Bethlehem Shipbuilding San Pedro built: US Navy Destroyers and after the war tugboats. The yard became involved in World War II production in the early shipbuilding expansions initiated by the Two-Ocean Navy Act of July 1940. At its peak during the war about 6,000 worked at the yard, Bethlehem Shipbuilding San Pedro shipyard was opened in 1918 as Southwestern Shipbuilding by Western Pipe & Steel. Western Pipe & Steel sold the shipyard to Bethlehem Shipbuilding Corporation in 1925. Shipbuilding ended after World War 2 in 1946. In 1983 the shipyard was sold to Southwest Marine. In 1997 Southwest Marine operated four shipyards, which they sold to The Carlyle Group. Carlyle Group renamed the shipyard US Marine Repair. In 2002 US Marine Repair sold all six of its yards to United Defense Industries. In 2005 it was sold to BAE Systems but the yard was not used and the yard is now part of the Port of Los Angeles. The shipyard was located at 1047 South Seaside Ave, San Pedro.

Terminal Island, historically known as Isla Raza de Buena Gente, is a largely artificial island located in Los Angeles County, California, between the neighborhoods of Wilmington and San Pedro in the city of Los Angeles, and the city of Long Beach. Terminal Island is roughly split between the Port of Los Angeles and Port of Long Beach. Land use on the island is entirely industrial and port-related except for Federal Correctional Institution, Terminal Island.