The system is an enclosed, oil filled, shaft and thrust bearing assembly which includes an oil pump to circulate the oil throughout the system. The thrust bearing assembly allows the thrust to be directed to the shafts mounting system rather than through the vessels main propulsion engines and isolators thereby reducing vibration and noise emissions. In addition the elimination of thrust loading transmitted directly to the propulsion engines reduces wear and tear on the engine mounts, isolators and engine support structures. The non rotating casing of the shaft assembly allows clean water to flow to the propeller which allows more delivered horsepower to be used by the propeller.