The Ship Yard is the place for building ships needed to build an empire. Each level reduces the time needed to build a ship. You may build up to 100 ships per activity. Thus you could build 1000 ships at once with 10 free activities. You can only build one ship yard per colony.
Building requires power and a commander of proper level, no people (population) is needed or consumed by this building. A level 1 requires 5 food, 2 ore, and 2 fuel to begin construction.
See Ship Assembly System for uses of the Ship Yard.