PORTLAND, Maine (AP) A ferry service that takes residents and visitors to islands in southern Maine will receive more than $3.4 million in upgrades from the federal government.

Officials announced the grant to Casco Bay Island Transit District on Thursday. Casco Bay Lines says it applied for the money for terminal renovations from the Federal Transit Administration earlier this year.

Casco Bay Lines’ Portland terminal was built in 1988 and the service says it was designed for an annual capacity of half a million passengers. The terminal handles more than 1.1 million passengers today and is expected to continue growing.

Casco Bay Lines says its terminal project was one of nine projects awarded funds as part of nearly $33 million in nationwide aid provided by the FTA.