The inflatable boat carrying nine passengers collided with the Port Authority’s ship in Koločep's bay near Dubrovnik on Tuesday night at 21:20.
The passengers were employees of the Bowa restaurant on Šipan island, among them, the restaurant owner Alen Perišić who operated the ill-fated vessel.
The maritime accident occurred at a time when the official Port Authority's ship was engaged in an emergency medical transport operation to the island of Mljet.
Two people with minor injuries have been rescued from the sea, while two people were tragically found dead. An intense search for the other five missing passengers continues with the help of the medical team, the official police ship and the ferry boat Hanibal Lucić.
The passengers were heading back from Šipan island to the mainland, more precisely to Brsečine village just north of Dubrovnik.
According to the coastguard captain, the inflatable boat was not equipped with navigation lights.