RedactedNarrative: Vessel was transiting from Reedville, VA. to Beaufort, NC. At approximately 1000 Hrs. the vessel was 3.5 miles East of Windmill Point, VA. in the Chesapeake Bay, when there was an explosion in the engine room.  The cabin immediately filled with smoke and fire. Due to the smoke, the operator was unable to locate any fire extinguishers or life jackets. He was only able to make one VHF radio distress call.  A vessel nearby heard the distress call on channel 16 and removed the operator from his burning vessel.  He was later transferred to a Coast Guard vessel and then to Coast Guard Station - Milford Haven in Mathews County.  He sustained no injuries.  The vessel burned to the water line and sank.  The owner of the vessel has contracted Tow Boat US to remove the hull from the Chesapeake Bay.