Stena Line has been selected by Dublin Port Company to operate a new Dublin to Birkenhead service from early next year.
It follows the decision by P&O to exit the Dublin-Liverpool route, which operated from Terminal 5 at the port, by the end of the year.
P&O said it was quitting the route due to the unavailability of a berth in Merseyside next year.
In September, the Port Company issued a call for proposals from interested ferry lines to service west coast English or Welsh ports - excluding the Holyhead route.
The outcome of the selection process will also see Seatruck Ferries and parent company CLDN further developing their Dublin-UK services as part of a shared freight terminal agreement.
Stena Line's new freight service between Dublin and Birkenhead commences in mid-February, while Seatruck Ferries will move its Dublin-Heysham freight service within Dublin Port to Terminal 5 next month.
"It's good news for Irish exporters and importers. Stena already operates a route from Belfast to Birkenhead," Cormac Kennedy, Head of Commercial with Dublin Port told RTÉ's Morning Ireland.
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"I think the important thing for exporters and importers is that we've managed to maintain choice, both on the Dublin-Holyhead-Heysham routes, and it combines well with the existing competitive routes that operate on Dublin-Holyhead," he explained.
Stena will initially operate with a one ship service, but they intend to expand the service as the demand arises.
"The opportunity that's been given to Seatruck Ferries allows them to do at least four sailings a day in both directions. That gives great choice to the users of the route," Mr Kennedy said.
The Dublin-Liverpool route had been served by two P&O ferries making 24 sailings a week.
It was mainly used to transport freight between Ireland and the UK.
"DPC’s decision to award a shared licence to both Stena Line and Seatruck Ferries at Terminal 5 maximises the port’s existing infrastructure by pushing more truck and container freight through the terminal’s footprint," the Port Company said in a statement.
It added that the move supports its objective of adding capacity where possible, given the constraints on port lands, with Dublin Port already running close to capacity.
"It’s essential for Ireland’s economy that we have strong availability and competition on direct shipping routes between Dublin Port and the UK," Barry O’Connell, CEO of the Dublin Port Company said.
"We are pleased to welcome Stena Line’s new Dublin-Birkenhead route which brings choice to the market, and to continue working with Seatruck Ferries and CLDN on growing its Dublin-Heysham service."
Stena Line already operates from Dublin Port to Holyhead and from Birkenhead to Belfast.
It says this new service will complement those existing routes.
"With Stena Line now operating two routes out of both Dublin Port and Birkenhead, we are establishing key logistics hubs connecting freight flows across the Irish Sea and creating efficiencies for port users," Paul Grant, Trade Director (Irish Sea) with Stena Line said.
"We are confident that this new service will prove popular, offering more choice for our freight customers on both sides of the Irish Sea," he added.
Seatruck Ferries said it looked forward to further developing its partnership with the Dublin Port Company.
"The use of both Terminal 4 and Terminal 5 will enable us not only to further increase capacity but also to optimise the efficiency of our operations at the port," Alistair Eagles, Managing Director of Seatruck Ferries said.
