Princess Cruises ship that crashed into San Francisco pier cleared for departure

The Ruby Princess cruise ship that was damaged after it crashed into a pier in San Francisco is expected to set sail on Sunday afternoon after it was cleared for departure.

The U.S. Coast Guard announced early Sunday morning that repairs on the ship, which startled sleeping San Francisco residents Thursday morning when it collided with Pier 27, are complete.

The Coast Guard lifted the Captain of the Port order at 1 a.m. PT Sunday.

The ship was scheduled to depart at 2:30 p.m. PT., Princess Cruises said in a statement.

New passengers who boarded the ship after the accident had until 11 a.m. PT on Sunday to decide whether to continue to the next port or disembark and end their trip. A total of 2677 guests and 1161 crew were expected to be on board when the ship departs -- down from the more than 3,000 guests who initially boarded, according to Princess Cruises.

Originally a 10-day cruise, the trip has been whittled down to seven days and will return on July 16 as originally planned after stops in Ketchikan, Alaska, on July 12 and Prince Rupert, British Columbia, on July 13, according to Princess Cruises.

Guests who boarded Thursday were given the option to cancel their trip and receive a 100% refund on their cruise fare, post-cruise hotel packages and transfers booked through Princess, prepaid shore excursions and other prepaid items and taxes, fees and port expenses, according to the cruise line.

They were also offered a 50% voucher for a future cruise. Guests who did decide to stay aboard and embark on the shorter journey to Alaska will receive a partial refund of 75%.

The ship was returning from a 10-day cruise to Alaska when it slammed into San Francisco's Pier 27, a large dock on the waterfront of The Embarcadero that hosts cruise ships leaving and arriving in San Francisco Bay.

There were 3,328 guests and 1,159 crew members on board when it crashed, none of whom were injured and all safely disembarked, according to Princess Cruises.

While the ship was visibly damaged, the dock took the brunt of the crash, witnesses said.

The Coast Guard is investigating the incident, according to police.

ABC News' Nicholas Kerr and Ivan Pereira contributed to this report.