The base was built by the US Navy Seabees starting June 13, 1944 as part of the New Guinea campaign of the Pacific War.

The US Navy built a boat repair depot including Auxiliary floating drydocks.

[1][2] In May 1944, the US Navy's 7th Amphibious Force requested a base at Alexishafen to provide repair and logistical support for the many boats operating off the north shores of New Guinea.

The US Navy began using Bostrem Bay on April 27, 1944, when a destroyer Anchored at Alexishafen.

The Australians built a seaplane base in Madang Bay, used by the US Navy also.