Transport Canada announced CAD 22m ($17m) worth of investments in government-controlled shipowner Marine Atlantic.
The federal cash will help the ropax ferry owner upgrade terminals and shoreside operations.
Marine Atlantic's three-ship fleet serves the eastern provinces of Newfoundland and Labrador and Nova Scotia.
"The funding announced in Budget 2016 will continue to strengthen Marine Atlantic's vital transportation service for the citizens of Newfoundland and Labrador including those who rely on the shipment of goods to and from the province on a daily basis," said Transport Minister Marc Garneau.
