The red colour is rust.
We can then make a series of guesses due to a lack of adequate iformation.
If it is raw-water cooled (doubtfull) it's quite natural and rust from inside the exhaust manifold.
If it is indirect cooled it coulod be:-
1. A cylinder-head leak - usually a
gasket, coolant running into the cylinder, and rusting the bore.
3. Internal corrosion of the exhaust expansion chamber or heat exchanger.
Really only one way to tell, have an experienced
marine engineer chack it out, or have off the
head on the offending engine and check
gasket and for a crack in the coolant waterways.
The only real risk with a leak into the cylinder is that the bore fills with water and the incompressible liquid causes bent con-rod or fractured piston.