Rough seas are slowing rescue efforts for as many as 130 people missing after the ferry MV Rabaul Queen sank off the east coast of Papua New Guinea.

Authorities have confirmed that 219 survivors have been pulled from rough seas between PNG's second largest city, Lae, and New Britain after their ferry sank this morning.



But rapidly diminishing light and poor weather mean the search is likely to be put on hold until Friday.



"It is hampering efforts," said the rescue coordinator and acting CEO of PNG's National Maritime Safety Authority, Captain Nurur Rahman.



"We cannot transport people from the four (rescue ships) to smaller ships and then to Lae."



He said he was waiting on confirmation that another 13 people had been found alive, and said there were few signs of injuries among survivors.



However, he was hopeful of finding more survivors in the coming days.



"I'm always hopeful," he said.



"People have survived up to two days in these waters. We have warm waters."



However, one survivor was exhibiting signs of hypothermia and another had a dislocated shoulder.



The Australian Maritime Safety Authority said 219 people had been rescued and taken aboard some of the six merchant vessels that were directed to the disaster site by maritime authorities.



PNG awoke on Thursday to news that as many as 350 people might have perished when the ship went down as it travelled from Kimbe in New Britain to Lae, PNG's second largest city, about 6am (AEST).



PNG Prime Minister Peter O'Neill said he had received a phone call from Australian High Commissioner Ian Kemish, who pledged Australia's support.



Australia sent several aircraft to the area where the ferry went down.



"Our sympathies go out to the families," Mr O'Neill said.



"We need to bring some safety measures back into this industry."



The ship went down in what's understood to be extremely bad weather.



Australian Foreign Minister Kevin Rudd said Australia stood ready to help in any way it could.



"I spoke to my counterpart, PNG Foreign Minister Ano Pala, earlier today to inform him that Australia stands ready to offer all necessary assistance," Mr Rudd said in a statement.



The Australian Maritime Safety Authority (AMSA) arranged for ships in the area to conduct rescues and for aircraft to fly over the area.



The aircraft will assist with dropping rescue equipment, including life rafts.



The Australian High Commission in Port Moresby is still trying to confirm whether any Australians were on the vessel.



The Department of Foreign Affairs and Trade said the shipping company had advised them there were unlikely to be any foreigners on board.



Prime Minister Julia Gillard earlier said there was likely to be a very high loss of life from the tragedy.



"This is obviously a major tragedy," she said.



"We have been asked to provide assistance to PNG and we are providing assistance to PNG."



The opposition said it supported the government's decision to help in the search for survivors.



"It is vital that every effort is made to locate and rescue any of the people in the water," foreign affairs spokeswoman Julia Bishop said.



"The coalition extends its sympathies to the families of those on board the MV Rabaul Queen and extends its support to the efforts of PNG and Australian rescuers."



- AAP



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Originally published as Rough seas slow PNG ferry rescue