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Recent growth in seaborne trade has increased the tugboat operation cycle to maneuver incoming marine vessels at port. To meet the tugboat load demand for maneuvering, multiple power sources are being employed on-board. This necessitates a coordinated control strategy for the effective operation of these multiple power sources. To design an effective coordinated control strategy, this article initially estimates multiple power sources capacities (doubly fed induction machine (DFIM) and battery storage system) for a diesel-electric tugboat system based on a real-time tugboat operation cycle obtained from Visakhapatnam port, India. With respect to these multiple power sources, a coordinated control strategy for a better fuel efficiency is proposed based on a state machine control algorithm. The proposed control strategy operates a variable speed diesel-electric generator (diesel engine coupled DFIM) at a minimum specific fuel consumption value and battery based on its state of charge. To show the efficacy of the proposed variable speed diesel-electric system, fuel consumption is computed, which resulted in 26.42% of saving in comparison with a traditionally used diesel-mechanical tugboat. To evaluate the real-time system (2 MW DFIM + 150 kWh battery), MATLAB/Simulink tool is used and an experimental demonstration is performed on a laboratory prototype. [ABSTRACT FROM AUTHOR]