Traveler ferry sinks off Papua New Guinea

A ferry moving an approximated 350 travelers has sunk off the north coast of Papua New Guinea (PNG), authorities have confirmed.

Captain Nurur Rahman, from the PNG's National Maritime Safety Authority (NMSA), told the BBC almost 200 people had been saved - most of them from the water.

Tries are ongoing to pick up as many as possible before sunset.

Australia Prime Minister Julia Gillard said her country was dispatching assistance.

The MV Rabaul Queen, operated by PNG Company Star Ships, was traveling between the towns of Kimbe and Lae.

It sent out a sorrow sign in the early hours of Thursday.

The Australian Maritime Safety Authority (AMSA), which is helping PNG's National Maritime Safety Authority (NMSA), has verified that the ship sank around 16km (9.9 miles) off Finschhafen.

Eight vessels and three helicopters are at the site assisting with the rescue.

In a statement, AMSA said four of the vessels on scene were recovering survivors. It said its Dornier aircraft, which has numerous life pushes on board to drop to survivors, was also on the scene.

Capt Rahman told the BBC he had reports of people floating in life jackets where the boat sank.

Star Ships spokesman told the AFP news agency that "terrible weather" was considered to have sunk the ship.

"There are survivors. At the moment savers from Australia are at the scene. No losses have been reported yet," the spokesman said.

Star Ships is one of PNG's largest ship operators.