At least two people died and the fate of about 600 others was unknown after a ferry collided with a cargo ship in the Philippines on Friday, authorities said.

At least two people died and the fate of about 600 others was unknown after a ferry collided with a cargo ship in the Philippines on Friday, authorities said.

The Thomas Aquinas ferry, carrying 692 people, collided with a freighter near the port of Cebu, the country's second biggest city, coastguard spokesman Commander Armando Balilo said.

Authorities said a rescue mission using all available resources was launched immediately after the collision, which occurred about 9:00 pm (0100 GMT).

"The Aquinas has sunk and we have sent a navy patrol gunboat to join the coastguard in the search and rescue effort," Fabic said in Manila.

"We have plucked dozens of survivors from the water but we can't say if everyone has been accounted for."

Rachel Capuno, a security officer of the ferry's owners, told Cebu radio station DYSS that the ship was sailing into port when it collided head-on with the cargo ship.

"The impact was very strong," she said, adding the ferry sank within 30 minutes of the collision.

Balilo said rescuers had saved 22 people and were frantically searching for others who were thrown overboard during the crash.

He asserted two corpses had been plucked from the water.
Balilo added there was no immediate information on how many crew members were aboard the cargo ship.

The cause of the collision was not immediately known.