Missile embedded in cruise ship, says Downer

CANBERRA - A cruise ship with up to 19 Australians on board has an unexploded missile embedded in an accommodation unit after a possible terrorist attack off the east African coast, Foreign Minister Alexander Downer says.

The passengers on the US-owned Seabourn Spirit were woken by machinegun fire and a rocket-propelled grenade crashing into the vessel at dawn on Saturday about 160km off the coast of the lawless nation of Somalia.

The luxury cruise ship is about to dock in the Seychelles, but Mr Downer said that could be delayed while officials disarm the unexploded ordnance.

"We're not sure whether in the early stages the ship will be able to tie up at the wharf there because of concern about an unexploded rocket that is embedded in some of the passenger accommodation of the ship," Mr Downer told the Nine Network.

"American officials are going to board it initially to deal with that problem, and once that problem's dealt with then our consular officer will be able to go on board as well."

The attack was believed to have been carried out by pirates, but Mr Downer said it may have been a terrorist act.

"The whole thing is an extraordinary story, that it would be attacked by, we're not quite sure who at this stage, but it's possible the people who attacked the ship were terrorists," he said.

Mr Downer said it was not known exactly how many Australians were on board, with 13 named on the ship's passenger list and another six who were thought to have joined the cruise.

The ship, with more than 300 people on board, was on its way to the Kenyan port of Mombasa where it was due to pick up more passengers, including Australians.

Those Australians will now be met by a consular official from Australia's embassy in Nairobi.

The passengers awoke about 5.30am on Saturday to the sound of gunfire as two armed vessels approached the Seabourn Spirit.

The 7.5-metre inflatable boats approached the vessel and fired as their occupants attempted to get on board the liner.

Seabourn Spirit was not boarded, managing to outrun the attackers and change its course.

One member of the crew was slightly injured before the attackers were repulsed, a London-based Seabourn Cruises spokesman said.

The crew member was reportedly hit by flying debris.

The ship has 161 crew members and 151 passengers.

The company said the ship, registered in the Bahamas, sustained minor damage and was safe to sail.

- AAP