The Korean government is facing growing concern over the increasing levels of fine dust. A significant contribution to this problem comes from coastal vessels. To mitigate this, an electric ship propulsion system has been proposed as a solution to reduce air pollution. The application of a fully electric propulsion system in a ship is challenging due to size, capacity limitations, and the cost investment of the battery system. To address the challenges of battery limitation and initial investment costs, the development and supply of removable battery supply systems (RBSSs) for fully electrified battery powered (F-EBP) car ferries are studied. A permanent magnet synchronous motor (PMSM) for the F-EBP car ferry using a roll-on/roll-off-type RBSS is developed in this work. Firstly, the concept of the F-EBP car ferry is discussed, and the specifications of the electric car ferry propulsion system are provided. Secondly, motor design and electromagnetic analysis are performed using finite-element analysis (FEA), where the heat sources including copper loss, core loss, and PM loss are calculated. Mechanical loss is also considered. Finally, a thermal network of the motor is built considering the lumped-parameter model. The results of the thermal analysis indicate that the motor operates within the safe region and can perform well in rated working conditions.