Marine Atlantic released this concept design for two ferries that it expects to have operating by the summer of 2011. (Courtesy Marine Atlantic)

The Crown corporation that operates a ferry service between southern Newfoundland and Nova Scotia is chartering two vessels to start work on the Gulf of St. Lawrence next summer.

The two Swedish vessels, the Stena Trader and the Stena Traveller, will carry 1,000 passengers each.

At a news conference Friday, Marine Atlantic announced that two aging ferries — the Joseph and Clara Smallwood and the Caribou — will be retired.

"I guess we're all excited," Marine Atlantic president Wayne Follett said. "I see today as a watershed day for Marine Atlantic, and we are proud to introduce the new fleet."

The vessels have 300 beds, with roughly the same capacity for passengers as the ferries that will be retired and sold off. However, each can hold many more cars and trucks.

"The ability to carry cars, tractor-trailers and drop trailers — compared to the Joseph and Clara, and the Caribou — will be about a 50 per cent increase," Follett said.

Marine Atlantic is not revealing how much it is paying for the ships. But Rob Merrifield, the federal minister of state, said the new vessels represent a great improvement in the Crown corporation's service.

"It's an exciting day for the people in this room. I don't know if you're as excited as I am, but you should be," Merrifield told reporters.

The ferries will be refitted in Germany, during which each will be made 12.5 metres shorter. The change will allow for easier manoeuvres in the harbour of Port aux Basques, Marine Atlantic's main terminal in Newfoundland.

The first ferry will be delivered around Christmas.