You can assign more than one material to a mesh. Create more slots with the + and set colors and whatever, select some faces on the model, click the assign button to assign those faces to the material slot you have selected in the in the list.
Here’s your file back. I assigned a few colors to the boat.
First I removed over 300 doubled vertices and set subsurf for easier selection of the faces I was assigning colors to. You should run through a couple basic tutorials to get up to speed with lots of little details like that. BlenderCookie has some good free ones that start out with the basics.
Happy Blendering. 