Cook Strait ferry operator Strait Shipping in December will replace the Monte Stello with a ferry from Denmark, increasing its capacity before the peak season and next year's Rugby World Cup.
The New Zealand family owned company has purchased the Danish vessel Dueodde, which currently sails between the island of Bornholm and the mainland of Denmark. The Monte Stello will be sold.
"The purchase is a very significant investment for a private, New Zealand owned company and represents our long-term commitment to servicing the route," Strait Shipping managing director Sheryl Ellison.
The new ferry has 50 percent more freight and vehicle capacity and space for a third more passengers than the vessel it replaces, while burning significantly less fuel.
"It will enable us to meet our freight and passengers needs in the high season, and around key events such as Rugby World Cup 2011, while remaining sustainable during the slower off peak."
The purpose built roll-on roll-off vessel was manufactured in a Dutch shipyard in 2005, and has a range of green features including its fuel efficiency, use of waste heat for heating hot water and passenger areas and allergy free passenger zone.
It is 124.9 metres in length, has a maximum speed of 18.8 knots and has 1248 lane metres for freight and vehicles.
The ferry's contemporary Scandinavian designed interior accommodates 400 passengers.
On-board facilities include a cafeteria, reception area, shop, a family area, viewing lounge and allergy free zone. Big screens will be installed to allow for the Bluebridge service's offering of free movies.
Ms Ellison said the vessel would be the newest ferry on Cook Strait.
The ship is to be renamed the Straitsman in recognition of Strait Shipping's first vessel, in service for 11 years from when the company began in 1992.
The vessel is equipped with high-tech navigation aids, stabilisers, two powerful bow thrusters and in-line high lift flap rudders to ensure efficient manoeuvrability.
Strait Shipping has been moving freight between the North and South Islands since 1992 and diversified into the passenger market with the launch of the Bluebridge service in 2003.
It competes against state-owned Interislander, which is part of Kiwi Rail.