A KEEL-laying ceremony launched construction of a £10m freight ship at Cammell Laird.

The state-of-the-art vessel Red Funnel, commissioned by the Isle of Wight ferry operator, is due for completion in spring next year.

The ceremony at Laird's Birkenhead shipyard was watched by 300 guests.

Karen George, wife of Red Funnel's chairman, had the honour of pushing the button to lay down the first section of the keel.

John Syvret CBE, Laird's chief executive, said: "The Cammell Laird management and workforce are looking forward to building this state-of-the-art ferry, drawing on all our marine engineering expertise.

"We are especially proud to be working for a British ferry company and winning the contract against international competition.

"This wonderful new ferry will join a collection of ferries that Cammell Laird has built in recent years, and will share the build hall with the iconic vessel Sir David Attenborough, which is the largest commercial vessel built in Britain for a generation.

"It is tremendous to see more ship owners and ferry operators choosing to build in the UK, this is very much in line with the Government's National Shipbuilding Strategy which aims to recalibrate British shipbuilding as a major job and wealth creator now and into the future."

Kevin George, chairman of Red Funnel Group, said: "We are proud to have placed this order in the UK as the work helps ensure the revival of world-class shipbuilding in this country.

"The keel-laying is one of the most time-honoured traditions in the building of a ship and we very much look forward to watching the build progress over the coming months.

"Once in service, the additional freight capacity on our Southampton-East Cowes route will help grow the Isle of Wight economy."

Minister for Employment Alok Sharma MP said: "I am delighted that Red Funnel’s multi-million pound investment is supporting local jobs, providing a boost to the local economy and also enhancing Cammell Laird's very strong shipbuilding credentials."

In time honoured tradition and as a symbol of good luck, coins, in this case an Isle of Wight silver sixpence dating from 1811 and a halfpenny from 1792 were placed under the keel block.

Both coins will eventually be recovered and presented to "Red Kestrel" when she enters service.

Red Kestrel is Red Funnel's first dedicated roll on-roll off freight ship and will provide additional year-round freight capacity on Red Funnel’s Southampton-East Cowes route which currently handles 53% of all freight movements across the Solent.

At 74m in length, it will provide 265 lane metres of roll-on/roll-off freight capacity and will carry up to 12 passengers.