Polish operator Polferries has kicked off its fleet renewal with a domestic ro-pax order.

The company has picked Szczecin shipyard Morska Stocznia Remontowa Gryfia for a newbuilding estimated to cost PLN 450m ($110m).

Delivery is set for 2019.

"It is a historical moment for us, because the last ferry commissioned by us was built in 1978. We are making new history now," CEO Piotr Redmerski told local media.

"We currently have three ferries, two of which need to be replaced. We would like to develop our fleet to five ferries and we need them urgently, as the market grows by 7-10% per year."

The environmentally friendly vessel will carry 400 passengers between Swinoujscie and Ystad.

It is being financed by the Polish state development fund and commercial bank loans.

Gryfia hopes to have another newbuilding under construction by the time the new vessel is handed over, said yard CEO Marek Rozalski.