Short sea shipping: Newbuild and retrofit solutions

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Short sea shipping: Newbuild and retrofit solutions for small merchant vessels

Fleet renewal is becoming essential in today’s evolving small merchant vessel market. Many vessels are approaching the end of their operational life, and owners must now find flexible, future-ready solutions to meet tightening IMO and regional decarbonisation targets.

Wärtsilä supports small merchant ship owners commissioning new vessels – and the designers shaping them – with integrated propulsion and energy solutions that balance performance, compliance, and cost-efficiency.

Whether you're planning a newbuild or considering upgrades, Wärtsilä is your strategic partner for small merchant vessels.

How to save big on fuel? An integrated design approach will help

It’s important to consider the vessel’s drive train, energy flows, and behaviour as a whole. A successful integration of the propulsion system into vessel design can bring great results – saving big on fuel. Watch this 2-minute video to learn more:

Popular solutions for coastal tankers

Tanker vessels operating on short sea routes must meet a range of operational requirements. They may be chartered on short-term agreements with different voyage distances, load conditions and sailing speeds.

It is critical to optimise a coastal tanker vessel’s CAPEX and OPEX to secure its competitiveness and profitability.

Vessel type: Coastal tankers
Typical size range: 3,000–15,000 dwt
Most optimal solutions: 

  • Hybrid propulsion system (Engine + PTO/PTI + Battery ESS + EMS): Ensures redundancy, flexible operation, and zero-emission port manoeuvering.
  • Fuel-flexible medium-speed engine (such as Wärtsilä 25): Ready for LNG and ammonia, future-proof for decarbonisation.
  • Controllable-Pitch Propeller (CPP) system with advanced rudder: Enhances manoeuvrability and efficiency across variable load conditions.

Popular solutions for feeder container vessels

Feeder vessels are typically small container vessels that transport containers from smaller hub ports to larger regional terminals. Compared to other vessel types in the short sea shipping sector, feeders operate more predictable routes, matching the mainline traffic between the hubs they serve.

For feeder vessels, optimising OPEX is the key to profitable and competitive operations.

Vessel type: Feeder container vessels
Typical size range: 500–3,000 TEU
Most optimal solutions:

  • Hybrid-electric propulsion with battery peak shaving: Optimizes fuel use and handles reefer load spikes.
  • Dual-fuel engine (LNG-ready) with NextDF tech: Minimizes emissions and methane slip; ideal for EU-regulated waters.
  • Energy saving technologies (For example EnergoFlow and EnergoProFin): Improve propulsive efficiency and reduce fuel consumption.

Popular solutions for general cargo vessels and coastal bulkers

General cargo vessels and short sea bulker vessels must meet a wide range of operational requirements. They can be chartered on short-term agreements, with highly variable voyage distances, loading conditions and sailing speeds.

Optimising vessel CAPEX and OPEX are crucial to securing the profitability and competitiveness for general cargo vessels and coastal bulkers.

Vessel type: General cargo vessels
Typical size range: 3,000–30,000 dwt

Vessel type: Coastal bulker
Typical size range: 3,000–30,000 dwt

Most optimal solutions:

 

Newbuild solutions for small merchant vessel owners

When you seek reliability, high manoeuvrability and low or even zero-emission operations for your small merchant vessel, choose a partner such as Wärtsilä to deliver integrated solutions tailored to your needs.

 

Choose a future-proof investment

  • Fuel efficiency, operational efficiency, emissions compliance, and lifecycle cost control 
  • Fuel flexibility and digital readiness 
  • Integration of propulsion, energy, and automation systems: designed to work optimally together
Prefer designs that can comply with tightening regulations

As small merchant ship owners and operators navigate an era of evolving legislation, choosing decarbonisation-ready vessel designs is a strategic imperative. By investing in scalable, modular systems that integrate propulsion, energy, and automation technologies, you secure long-term compliance with IMO targets and regional regulations — even as requirements grow more stringent. Wärtsilä’s future-focused solutions support operational flexibility and simplify future upgrades, helping ensure your vessels remain competitive, efficient, and environmentally responsible throughout their lifecycle.

Regulatory and market context

Because the maritime transition toward sustainability is accelerating, the short sea shipping segment is facing a landscape of tightening regulations and shifting market expectations.

In the European Union: EU Emissions Trading System (EU ETS) and FuelEU Maritime are redefining compliance.

Globally: Benchmarks like EEXI and CII mean that even relatively young vessels must be evaluated to ensure continued operational eligibility and competitiveness. IMO’s Net-Zero Framework lays a solid foundation for marine decarbonisation towards and 2050.

In the market context: There is growing pressure from cargo owners, financiers, and charterers, who increasingly favour vessels with strong environmental credentials.

How to deal with the regulatory and market pressures

Newbuilds designed with integrated decarbonisation technologies, flexible power train, and digital capabilities are best positioned to meet both regulatory and client demands.

Existing vessels can consider strategic retrofits such as hybridisation, engine upgrades, and compliance-driven modifications.

Lifecycle planning will help owners make informed decisions on investments.

smart-propulsion

Smart propulsion system for newbuilds

Wärtsilä’s smart propulsion system takes an integrated approach, combining engines, energy storage, propellers, electrical systems, and digital controls into a single, optimised solution. This ensures that the components work optimally together and deliver maximum efficiency, flexibility, and compliance from day one.

This propulsion system is modular and built around a medium-speed engine, controllable-pitch propeller (CPP), power take-off/power take-in (PTO/PTI), energy storage system (ESS), and energy management system (EMS). It can be tailored to your vessel’s operational profile, whether you need silent port operations, fuel savings on variable-speed voyages, or extra power for manoeuvering.

Key benefits:

  • Fuel flexibility – Ready for LNG, methanol, and ammonia
  • Hybrid-ready – Supports electric modes and peak shaving
  • Redundancy and safety – Multiple power sources for critical operations
  • Lower emissions – Shore power enables zero-emission port stays and reduced GHG footprint
  • Lifecycle efficiency – Designed for long-term compliance and serviceability

This system is ideal for coastal tankers, feeders, and bulkers operating in EU-regulated waters or under charter conditions that demand both performance and adaptability.

Explore the components of Wärtsilä’s smart propulsion system for small merchant vessels

 

The propulsion equipment consists of

  • a controllable pitch propeller (CPP), which ensures flexibility under variable sailing conditions. The main engine is mechanically connected to the CPP through a one-step gearbox with PTO/PTI connection. OPTI design technology improves propeller performance and interaction between the propeller and the hull.
  • a bow thruster, which provides improved manoeuvrability
  • the Wärtsilä ProTouch propulsion control system offers a user-friendly interface and advanced features such as EcoControl
  • GATE RUDDER™ by Wärtsilä will enhance manoeuvrability and efficiency

Equipped with Wärtsilä’s smart propulsion system, your small merchant vessel can enjoy a long service life, meeting the current and future Carbon Intensity Indicator (CII) targets.

Main engine

The Wärtsilä smart propulsion system is powered by a 4-stroke medium-speed engine offering unmatched fuel flexibility. The engine can be installed on resilient mountings to reduce vibrations and underwater radiated noise. Depending on the selected fuel type, Wärtsilä can supply an optimised combination of exhaust aftertreatment (SCR/Scrubber) and a fuel storage and supply solution

3D drawing of main engine on a vessel

Power conversion

Power conversion onboard is based on an AC configuration with a DC hub. Power is supplied primarily by a variable-speed shaft generator during sailing and by shore connection in port. An auxiliary genset is provided as a backup. The shaft generator can also be used as a motor in PTI/PTH mode.

3D drawing of Power conversion on a vessel

Battery-based ESS

A battery-based ESS is connected to the DC hub to enable the hybrid functionalities of the Wärtsilä smart propulsion system. The energy capacity and power of the marine-certified lithium-Ion batteries are based on the vessel’s operating profile. The DC hub enables easy integration of additional energy sources like solar panels or fuel cells during the lifecycle of the vessel.

3D drawing of Battery-based ESS on a vessel

Fuel storage and supply

Fuel storage and supply can be adapted to multiple fuels, ranging from conventional liquid fuels and LNG to future fuels such as ammonia or methanol.

3D drawing of fuel storage and supply on a vessel

System operational modes explained

The integrated Wärtsilä Smart Propulsion System supports multiple operating modes to match the real-world demands of short sea fleets. Whether your vessel is manoeuvering in port, cruising under partial load, or idling at berth, each mode is designed to optimise fuel use, reduce emissions, and enhance reliability.

Mechanical mode – the vessel sails as a conventional vessel

The main engine drives the propeller and the auxiliary genset provides the required electric power for the hotel load.​

In mechanical mode, the vessel sails as a conventional vessel. This is the system fallback operational mode for any vessel operation.

Hybrid mode – For sailing and manoeuvering operation

The main engine provides the required power to the propeller and drives the PTO to supply the electric power for hotel load. The flexibility of the CPP is enhanced by the ESS, which ensures peak shaving, immediate load taking, optimised engine load and backup power.​


This system operational mode is the most typical in sailing operation. It can be also used in manoeuvring operation.

Electric mode – For navigation at slow speed and manoeuvering operation

The auxiliary genset provides the electric power for the PTI, replicating a small-scale electric propulsion system. The ESS is working in peak shaving mode.​

Electric operational mode perfectly fits both in navigation at slow speed and in manoeuvring vessel operation, when the combination of a small-size prime mover and a supporting ESS ensures a substantial reduction in fuel consumption and  emissions. Moreover, this operational mode provides a redundant “take-me-home” device.

Zero-emission mode – For slow-speed manoeuvering and navigating with zero emissions

The hotel and propulsion power are provided solely by the ESS. ​

As the batteries are providing the full electric load, this system operational mode can be carried out during relatively short periods of time both in navigation at slow speed or in manoeuvring modes, or may even become impracticable in case of high electric power demand depending on the cargo.​

In this system operational mode the vessel can manoeuvre and navigate at slow speed in environmentally friendly mode with zero emissions and with minimal noise and vibrations.

Boost mode – to reach maximum design speed

The main engine and PTI provides the required power to the propeller. The auxiliary genset, in combination with the ESS, gives the power needed for hotel load and PTI.​

This system operational mode allows the vessel to reach its maximum design speed, which typically has to be achieved only occasionally under exceptional conditions, while keeping the installed mechanical power to a minimum.

Manoeuvering mode – for efficient manoeuvering

The main engine provides the required power to the propeller and drives the PTO which provides the required electric power for the hotel load and the manoeuvring thruster in combination with the ESS for peak shaving, backup power and immediate power.​

For manoeuvring operation mode, the gate rudder plays a decisive role, allowing a smaller turning circle, a crabbing function and faster stops.

Hotel mode – for independent operation without shore connection

While shore connection is the preferential power source in port, the vessel can also operate independently when at anchor or in ports where the shore connection is not available. In this system operating mode, the auxiliary genset provides the electrical power for the hotel load, including ESS charging if needed.​

The auxiliary genset can be sized according to the average hotel load, since the ESS absorbs the power fluctuations, e.g. from cranes or pumps during loading/unloading. As a result, the auxiliary genset runs at an optimized load, reducing fuel consumption.

Genset mode – a back-up mode

In this back up mode, the engine is declutched from the propeller and is used in combination with the PTO as a genset to cover the hotel load and to charge the battery if needed.​

This operating mode provides further redundancy in case both the shore connection and the auxiliary genset are not available.

How Wärtsilä supports the decarbonisation journey of small merchant vessel owners

  • Wärtsilä can provide a detailed analysis of propulsion system alternatives. This will include open and transparent benchmarking of the solutions based on parameters such as GHG emissions, CAPEX, OPEX, EEDI, and CII.
  • Detailed technical specifications for the scope of supply is included. This supports the integration of the propulsion machinery system into the vessel specification.
  • A functional specification describes how the propulsion machinery system alternatives would be integrated. It will also detail their functionalities and operational modes. 

The analysis with the technical and functional specifications of the propulsion machinery system helps the owner understand the full potential of the solution.

For the naval architect and ship designer, the analysis helps integrate the propulsion machinery system successfully into the vessel design.

Find a collection of helpful resources: Essential solutions for naval architects and ship designers

Insights on short sea shipping

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Why a retrofit can still matter

Certain retrofits can still benefit small merchant vessels that have some lifetime left. For example:

  • Engine upgrades for fuel savings 
  • Compliance retrofits for EEXI/CII
  • Retrofit feasibility assessments
  • Lifecycle planning and fleet-wide strategies

Customer stories from the short sea shipping segment

See how other small merchant vessels have benefited from solutions provided by Wärtsilä.

  • Geared Tweendecker Vertom Render © Vertom Group
    Vertom Group

    Vertom Group chose integrated hybrid propulsion for four new tweendecker vessels as commitment to sustainable shipping

    Find out more
  • Erik Thun AB

    Erik Thun Group’s four coastal tankers benefit from the Wärtsilä 25 engine and can achieve high environmental performance in the long term.

    Learn more
  • Teekay-reference
    Eco-friendly shuttle tanker

    A broad range of solutions for a new tanker class that reduces not only the environmental impact from the vessel itself but from the cargo too.

    Read more
  • Marfin HY Bulker reference
    Paolo Topic

    The integrated solution delivers a drastic reduction in fuel consumption and maintenance costs.

    Read more
  • Vitol tanker
    Vitol tankers

    Wärtsilä EnergoFlow and Wärtsilä EnergoProFin solutions save 2 Vitol tankers 6% on annual fuel consumption and provide 16 days of free fuel per year.

    Learn more how Vitol saved 6% on fuel consumption
  • Aasen Shipping's modern bulk carrier
    Aasen Shipping

    Hybrid solution delivers big fuel savings, reliability and outstanding performance for Aasen Shipping's modern self-discharging bulk carrier.

    Learn more how hybrid solution delivers big fuel savings
  • Aurora Spirit

    How Wärtsilä Expert Insight service prevented a costly engine failure on Aurora Spirit, a dual-fuel e-shuttle tanker.

    Read more about Wärtsilä Expert Insight
  • MV Henrike

    How a propulsion retrofit led to significant fuel savings on MV Henrike, a general cargo ship.

    Learn more about propulsion retrofit

Build smarter, sail smoother: integrated solutions for short sea shipping. 

Choosing Wärtsilä means choosing a partner who understands the complexity of short sea operations. Wärtsilä can also delivers power, propulsion, and control solutions that work together in an optimal way. 

Whether you're designing a new container feeder, coastal bulker or tanker, or general cargo vessel, Wärtsilä’s integrated approach helps meet emissions targets and reduce fuel costs. You can stay competitive in this changing market.
Take the first simple step toward a smarter vessel: talk to us about your project.

Wärtsilä Marine. Let's connect.

Parts of this page have been written with the help of AI. A human expert has checked all contents for accuracy.