RESCUE crews in Papua New Guinea have rescued 28 people from the water after a ferry sank with as many as 350 on board along the nation's east coast.
The MV Rabaul Queen went missing about 8.30am between Lae and the West New Britain town of Kimbe today, PNG's National Maritime Safety Authority (NMSA) said.
Rescue co-ordinator Captain Nurur Rahman said four merchant ships were diverted to the scene by Australian authorities to help with the rescue.
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"They have rescued 28 people who are now on board one vessel," Captain 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."
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