Australia's competition regulator has allowed a coal shipment queuing system at the Port of Newcastle to remain in operation until June 30, by when a more competitive system is scheduled to commence.

The Australian Competition and Consumer Commission granted the approval to Port Waratah Coal Services and Newcastle Coal Infrastructure Group, having previously granted them interim approval from December.

The approval provides immunity from court action for conduct that might otherwise raise competition concerns under federal law, the ACCC said.

ACCC Chairman Graeme Samuel commended recent industry and New South Wales state government efforts "to be now close to implementing a long term solution" to queuing system issues.

"There is, however, a lot of work for the industry to complete in order to implement the long term solution by its target date of 30 June, 2009," Samuel said in a statement.

By Ross Kelly, Dow Jones Newswires; 61-2-8235-2957; ross.kelly@dowjones.com