Cross-Solent ferry operator, Red Funnel is to dramatically increase capacity on its Southampton-to-Isle of Wight routes with a major multi-million-pound expansion programme.

All three of the company's vehicle ferries are to be boosted with the addition of another car deck in a phased programme of work that will be carried out over the next two years, totalling £10 million.

This comes as Red Funnel carries out a series of intensive trials on its brand new £2.6 million high-speed catamaran Red Jet 4 that enters service next month.

Growing demand from foot passengers together with car and commercial vehicle drivers has resulted in the ambitious plan to re-shape and enlarge the ferries, Red Falcon, Red Osprey and Red Eagle, and introduce the biggest-yet catamaran on the company's high-speed services.

At the end of this year Red Falcon will go to Gdansk in Poland where the vessel will be horizontally sliced through beneath the passenger accommodation and then cut vertically before a new section of hull is added and an extra car deck put into place.

A similar procedure will be carried out on Red Osprey early next year while Red Eagle is due to go to Poland at the beginning of 2005.

Alistair Whyte, Red Funnel's managing director, said: "As much as we would have loved to have this work carried out here it just was not possible as the costs would have been substantially higher.

"When these ferries were introduced they were two and a half times bigger than those they replaced and now even these are too small.

"At peak times we operate full but with the new deck we will be able to carry up to 80 extra cars on each sailing.

"Ten or 12 years ago we had around 14 per cent of the market but now this has grown to 30 per cent of the business.''

With its upgraded facilities and increase in passenger facilities, Red Jet 4 is a significant step forward for the ferry operator on the route linking Southampton and West Cowes.

Some of the latest technology is incorporated in the design and construction of the catamaran that was built on the other side of the world in Tasmania.

One of the features is special rubber mounts that are used to support the passenger cabin, which can seat 277 people, so minimising the transfer of noise and vibration, resulting in a quieter and smoother journey.

The tender to construct the catamaran was won by Tasmania-based North West Bay Ships, an integrated designer and builder of a wide range of high quality aluminium ferries.

Red Jet 4 follows the basic design principles of the earlier Red Jet 3, the largest fast catamaran currently in operation, but, at more than 39 metres, the new craft will be five metres longer.

"We awarded North West Bay Ships the contract as we were impressed with their professionalism and the high standard of workmanship in the yard,'' said Mr Whyte.

"As the craft was built in Tasmania, the time difference meant that project managers had a day's grace to investigate issues that arose. They could then e-mail answers from the UK in time for work to start the following day.''

Red Jet 4 will be officially named at Cowes on Wednesday, June 18, by round-the-world yachtswoman Ellen MacArthur.