FERRIES-to-holidays operator Wightlink is to undergo a £25m modernisation programme.

The investment will spell a multi-million-pound boost for businesses and at the same time raise eyebrows at rival Red Funnel as the Solent war hots up.

Wightlink, which employs 750 people at the height of the summer season and runs services between Lymington and Portsmouth and the Isle of Wight, is ordering new ships, replacing operating systems, enhancing its corporate image and making changes to the structure of its senior management.

As part of the refinancing package, Wightlink is to buy two new purpose-built ferries for the Lymington-Yarmouth route, replacing the current ones that are more than 30 years old.

An option to build a third ferry will be taken out at the same time.

A spokesman said: "These new builds will have more capacity for cars and passengers than the existing ferries but modern designs and construction materials will ensure that they remain within the practical limits of draught, length and width for ease of operation in the Lymington River. Plans are already under way to look at prospective yards to quote for the building of the vessels and naval architects and designers are being engaged.

"It is hoped that the successful yard will be contracted by early autumn of this year, with a view to both ships starting service on the Lymington to Yarmouth route around Easter 2008."

Another key area of investment planned is in Wightlink's systems, to include the whole Internet, booking and ticketing side of the business.

The objective is to improve the travel experience by making the process of booking and handling of passengers easier. Wightlink also intends to improve shore-side services such as ticket offices and catering facilities, including on-board catering.

Meanwhile the company is seeking to strengthen its senior management with the creation of new positions and the amalgamation of others.

The key appointments will be a commercial director, a general manager (operations), a marine superintendent, a retail operations manager and a customer services manager.

Chief executive Andrew Willson, pictured left, said: "The investment programme will enable Wightlink to move forward in not only growing its business, but making it more efficient, more customer friendly and better equipped to offer the highest level of service in the cross-Solent ferry market."

Wightlink has five car ferries on the Fishbourne route, three on the Lymington/Yarmouth route and four FastCats, although one of these has just been taken out of service.