Algeria and China signed a contract worth $175 million for the construction of a large ferry, an official at a Chinese company told Xinhua reporter on Monday.

Director of Algiers office of China Shipbuilding Trading Company (CSTC), Luo Zengqiang, said the "agreement is important for Algeria as it is due to increase Algerian maritime traveling capacity."

He noted that "the vessel will serve the lines between Algeria, Spain, Italy and France," pointing out that the ferry will be one of the latest models of this type in Algeria.

The contract was inked Sunday between Algerian Maritime Transport Company and a Chinese consortium of Guangzhou Shipyard International and CSTC, for the construction of a new ferry with a capacity of 1,800 passengers and 600 vehicles.

Abdelghani Zaalane, Public Works and Transport Minister, told reporters that this contract is the result of three years of negotiations, adding that it is part of the North African nation's program to renew its maritime fleet.

He Hongyan, the representative of the Chinese Embassy in Algiers, said that this contract testifies a "mutually beneficial cooperation between Algeria and China."

The 200-meter long ship with a speed of 43.68 km per hour will be delivered within 26 months.

It will be equipped with restaurants, cafe, children's playground, space for prayer, gym, first class cabins, and 10 suites including two presidential rooms. The Chinese side will also provide a 6-month training program for Algerian staff as mentioned in the contract terms.