ABC: Fifty people have been rescued from a ferry that has sunk off Papua New Guinea but hundreds more remain missing.
The Australian Maritime Safety Authority (AMSA) says the MV Rabaul Queen, with about 350 people on board, went down 16 kilometres off the coast of Finschhafen, which is about 80 kilometres from its final destination of Lae.
Ferry operator Rabaul Shipping says it lost contact with the vessel early this morning.
AMSA put a call out for ships in the area to head to Finschhafen and a spokeswoman says four vessels are now recovering survivors, with about 50 rescued so far.
Police in Kimbe, where the ferry sailed from, say most of the passengers were students and trainee teachers.
A Cairns-based search and rescue plane is heading to the area as well as an Australian Defence Force PC-3 Orion.
PNG's national disaster centre says two helicopters and a ship were dispatched to search the area in addition to the two search and rescue vessels sent out by the country's National Maritime Safety Authority.
Australia's Department of Foreign Affairs says the ferry's owners do not believe foreigners were onboard, however consular officials are still seeking confirmation.
Prime Minister Julia Gillard says the sinking is a "major tragedy" and the Government is working to identify whether any Australians were on board.
"We have been asked to provide assistance to PNG and we are providing assistance to PNG," she said.
"But given the likely very high loss of life here, I think when this news comes to the attention of Australians around the country they will be thinking about the people of PNG as they respond to this tragedy."
Regular ferry services run to Kimbe, a popular dive site that attracts tourists from across the world.
By PNG correspondent Liam Fox and staff
ABC News
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