The Polish government is planning to support a domestic ferry order by setting up a new fund.

The Polish News Bulletin said the Maritime Investment Fund will support a contract lined up by Polish Steamship (PZM).

This will involve four vessels costing a total of PLN 1.6bn ($423m).

The shipowner's fleet of ferries is ageing, with nothing delivered after 1995. It also has bulkers.

The state has already helped compatriot Polferries obtain funding for a new ferry.

The plans are supported by the ministry of maritime economy and inland navigation.

Minister Marek Grobarczyk said the fund will enable shipyards to reduce risk.

It will be able to issue bonds to finance yard projects.

The minister is also hoping for support from banks.