Ships that anchor in Australian waters while waiting to load at Newcastle can be demoted in the queue while those that refuse to follow "lawful directions" may be prosecuted.

The Government wants the system operating by December 30 and draft rules have been circulated for comment by Newcastle Port Corporation.

The Opposition derided the plan when it was unveiled last December as an "out of sight, out of mind" approach and coal shippers said yesterday that nothing had changed.

"There will still be a queue and ships will still pay demurrage, they just won't be visible from Newcastle," one coal shipper, speaking anonymously, said yesterday.

A presentation to international customers said the vessel arrival system would not change the port's coal-export capacity but it would make the Newcastle anchorage safer while reducing the environmental impact of waiting ships.

Ships wanting to come to Newcastle would apply at least 14 days ahead and be given 10 days' notice of their estimated loading time. The ships must then "use all reasonable endeavours to present at the anchorage not more than 48 hours prior to their loading time".

"Vessels entering or using the anchorage more than 48 hours prior to their loading time may be demoted in the queue or may lose their priority or face prosecution as determined by Newcastle Port Corporation."

Any ship "anchored in the territorial sea of Australia during its transit" to Newcastle could be penalised.

Vessels that repeatedly refuse to follow the port corporation's "lawful directions" could be permanently refused entry to Newcastle.

The queue peaked in June 2007, when 83 ships waited an average of 28 days to load.

A port corporation spokesman declined to comment yesterday on the vessel arrival system.