UPDATE 3.30pm: AUSTRALIAN Prime Minister Julia Gillard says there is likely to be a very high death toll from a ferry sinking in Papua New Guinea.
Rescue crews have rescued 28 people from the water after a ferry sank with as many as 350 on board along the east coast.
A distress signal was sent from the MV Rabaul Queen at about 8.30am (AEDT) when travelling between Lae and the West New Britain town of Kimbe today, PNG's National Maritime Safety Authority said.
"There has been a boat go down in PNG with, as we understand it, 350 people on board," Ms Gillard said in Melbourne.
"This is obviously a major tragedy.
"We have been asked to provide assistance to PNG and we are providing assistance to PNG.
Australian diplomatic staff are monitoring the situation but there have so far been no reports of Australians on board.
"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.''
Rescue co-ordinator Captain Nurur Rahman said four merchant ships were diverted to the scene by Australian authorities to help with the rescue.
''They have rescued 28 people who are now on board one vessel,'' Capt Rahman said.
''I cannot confirm or deny the 350 missing number, it is hearsay. I have not seen the manifest as yet, but it is likely around 300.''
Capt Rahman said he was being fed information from a NMSA agent on board one of the ships.
''The dynamics of this thing are changing all the time, minute by minute,'' he said.
Earlier, a NMSA spokesperson said two helicopters from Lae had also joined the operation.
Ship operator Star Ships could not be reached for comment.
Lae is located about 300km north of the country's capital, Port Moresby
- Herald Sun
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