UK operator Red Funnel has placed a £7m ($9.1m) order for a new fast ferry at a domestic shipyard.
The 41-metre Red Jet 7 will be delivered from Wight Shipyard in 2018.
The deal is the first major investment in the Isle of Wight to mainland operator by the consortium of UK and Canadian pension funds which acquired it in July.
"The decision underpins the new owner's commitment to Red Funnel's Southampton-West Cowes route and to the future growth of the island's economy," it said.
Kevin George, Red Funnel CEO, said: "Once Red Jet 7 joins the fleet next summer we will have three large modern Red Jets each capable of carrying 277 passengers in comfort in all weather conditions. The introduction of Red Jet 7 will represent a further 51% increase in capacity for the Red Jet service".
The vessel will be fitted with four main MTU 2000 series diesel engines, each one connected to a Hamilton HM571 waterjet unit.
This helps to reduce fuel consumption and provides high levels of reliability, Red Funnel said.
