Tasmanian shipbuilder Incat is planning to help launch a ferry service between Burnie, King Island and Victoria by the end of 2019.
Spokesman Richard Lowrie told the Hobart Mercury daily that it wants to construct a 112-metre fast craft to boost tourism and trade.
The vessel would run three times a week and could be operated privately or by the Tasmanian state administration.
The plan is for the ship to carry 1,000 passengers and 400 vehicles at 35 knots.
The yard believes there are inadequate sea services between the island and mainland.
