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Waverley Steamer collided with Brodick Pier, Arran, Coast Guard confirmed.
Emergency services are present and the coast guard has established a helicopter landing site following reports of an incident at 5.15pm.
Accounts shared on social media suggest that there may be injured passengers on board.
The ship was due to arrive in Brodick around 5:00 p.m. after leaving Greenock in the morning.
The Waverley paddle steamer has just restarted sailing after a two-year hiatus due to urgent boiler repairs.
The number of passengers on board is unknown, however the paddle steamer is operating with a reduced number of passengers due to Covid-19 restrictions.
The Maritime Accident Investigation Branch has been informed.
A witness said he saw an ambulance, a fire truck and a helicopter at the scene.
Anne Cochrane, of Bishopbriggs, near Glasgow, had left the Waverley when it docked at Brodick earlier that day and was waiting to board when the incident occurred.
She said: “It crashed into the dock on its way back from Isla Santa. We are trapped in the departure terminal. We have no information.”
Ms. Cochrane was not injured, but believes there may be injured passengers on board.
Wait two years
The Waverley set sail for the first time in two years less than two weeks ago, an event that was delayed due to an “unexpected technical and administrative problem.”
The ship, described as the world’s last paddle steamer, missed the 2019 season while awaiting urgent repairs.
A funding appeal was launched in June 2019 and reached its target in December after receiving a £ 1 million grant from the Scottish government to help with the restoration.
This steamboat, built by A&J Inglis of Glasgow and first launched in October 1946, has been involved in accidents before.
It struck the breakwater at Dunoon with 700 passengers on board, 12 of whom suffered minor injuries, in June 2009.
In July 1977 it was severely damaged when it struck rocks near Dunoon.