A new £7m cross-Solent high-speed catamaran is to be built on the Isle of Wight.
Operator Red Funnel announced RedJet 7 will be built by Wight Shipyard Ltd, securing 85 jobs in East Cowes.
The order marks the first major investment by the consortium of UK and Canadian pension funds which bought Red Funnel earlier this year.
Red Funnel chief executive Kevin George said the bid was "competitive in terms of price and quality".
"The order represents a £7m investment in the local economy and will secure a wide range of skilled jobs in East Cowes and in the local supply chain," he added.
The 41m (130ft) vessel will be capable of carrying 277 people and is a sister ship to RedJet 6 which was launched last year.
It is expected to enter service in summer 2018.