More than 200 people have been rescued from the sea after a ferry carrying 350 people sank off the east coast of Papua New Guinea on Thursday, the Australian Maritime Safety Authority (AMSA) said.

"As at 4:30 p.m. AEDT (Australian Eastern Daylight Time), there are eight merchant vessels on scene, five of which have recovered survivors," AMSA said in the MV Rabaul Queen incident update published on its website Thursday.

"There are reported to be 219 survivors on these five vessels," AMSA said.

The AMSA is currently providing assistance to the PNG Maritime Rescue Coordination Center which is coordinating rescue efforts involving the MV Rabaul Queen.

According to AMSA, the vessel is reported to have sunk approximately nine nautical miles (around 16 kilometers) off Finschhafen while traveling from the town of Kimbe to Lae, PNG at 7:25 a.m. AEDT on Thursday.

Some 350 people are believed to be on board when the ferry sank.

Chinese vessel rescues 29 people

A Chinese vessel rescued 29 people from waters off Papua New Guinea's east coast after a ferry sank Thursday with more than 300 people onboard, the China Maritime Search and Rescue Center said Thursday.

The vessel "Zhonghe," belonging to the China Ocean Shipping (Group) Company, spotted the sinking ferry at 12:08 a.m. while sailing from Australia to China's Ningbo Port, said the center, which is administered under the Ministry of Transport.

After receiving a report from the Chinese ship, ministry officials immediately ordered it to help rescue the ferry's passengers.

Rescue efforts are under way and the center is maintaining communication with Papua New Guinea's rescue organizations.