The 29 rescued survivors were accommodated in the ship's main meeting room. They were also provided with dry clothing and food.

One of the rescued, a child suffering from fever, received immediate medical care, the captain said.

From 4 pm the sea became choppy as winds picked up but the rescue operation continued until about 7:35 pm. The 29 survivors were then taken to the nearest port.

More than 200 people were rescued, according to the Australian Maritime Safety Authority.

Apart from the 29, "there are reported to be 219 survivors" on the five other rescue vessels, the authority said.

Australian Broadcasting Corp quoted police in Kimbe as saying that most of the passengers were students and trainee teachers.

The search was suspended until dawn Friday due to rough weather, said Nurur Rahman, the authority's rescue coordinator.

Australian Prime Minister Julia Gillard earlier described it as a "major tragedy".

She was speaking before details of the rescue operation had emerged and there were fears that hundreds of lives had been lost.

"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 Papua New Guinea," Gillard said in the hours immediately after the sinking.

Papua New Guinea Prime Minister Peter O'Neill said the cause of the accident was unknown, but acknowledged that safety in the shipping industry was lax. "We need to bring some safety measures back into this industry," O'Neill said.

Xinhua and AFP contributed to this story.

China Daily