There will be more room available in the new terminal
A 24-year-old Hampshire ferry port is to be demolished next year to make way for a new £16m passenger terminal.
Portsmouth Continental Ferry Port will be torn down in January so the new steel and glass structure can be completed by the end of year.
The building will feature shops, an upstairs bar and a currency exchange, said the council which owns the port.
It added there will also be more room to manage cruise ships, baggage handling and immigration.
Phil Gadd, port manager, said: "This present building was built in 1976 and then it was only a temporary building. It is mainly wood and hardboard."
Paul Clifton, BBC South's transport correspondent, said: "There will be more room for handling cars as they check-in and load, allowing the port to expand.
"Despite the recession and the weakness of the pound against a strong Euro, passenger numbers held up better than expected this year.
"The port hopes a new terminal, built to last 30 years, will put it in a better position to resume growth."