A large bulk carrier entering the world's largest coal port has not scared protesters from the water in Newcastle.
About a dozen kayaks and small boats remained on the harbour on Thursday evening as two tug boats escorted the ship to the Port of Newcastle.
The protesters, part of climate activism group Rising Tide, paddled into the harbour in an attempt to block the port entry.
The protest action is part of a week-long event being hosted in Newcastle called The People's Blockade of the World's Largest Coal Port.
The protesters sat in the middle of the harbour as the bulk carrier tooted its horn as it entered.
Police in boats and on jetskis ushered the protesters away from the ship.
Maritime police and specialist crews were out on the water ushering paddlers away from the bulk carrier. (ABC Newcastle: Lillian Watkins)
Protesters entered the harbour late Thursday afternoon after a court ruled a marine exclusion zone, put in place for the protest, was unlawful.
However, the presiding judge said her ruling did not mean it would be lawful to protest in the water due to a separate action by NSW Police which successfully sought an order from the Supreme Court to prohibit an on-water demonstration.
No arrests were made on Thursday night, but with protest set to continue over the next few days police have warned unlawful activity may result in fines or imprisonment.
In a statement, NSW Police said it will adopt a zero-tolerance approach to actions which threaten public safety and the safe passage of vessels.
Protesters at Newcastle Harbour on Thursday. (ABC Newcastle: Lillian Watkins)
Court win, but police order in place
Earlier this week Transport for NSW imposed the water exclusion zone for Newcastle Harbour under the Marine Safety Act, preventing any unauthorised vessels from entering the water from 5pm Thursday until 8am Monday.
But within an hour of that zone coming into force, Justice Sarah McNaughton quashed the order after Rising Tide challenged the department's interpretation of the Marine Safety Act.
"I do note that even though I have found the notice should be quashed … that does not necessarily mean activities that have been planned by the organisation will be lawful," Justice McNaughton said.
The comments were in reference to the separate action by NSW Police.
She said with what had been planed by Rising Tide "on the face, it would appear they would be remaining unlawful if they were to go ahead as planned".
Rising Tide protesters on the shore of Newcastle Harbour. (ABC Newcastle: Lillian Watkins)
Earlier this month Rising Tide submitted a Form 1 application seeking permission from NSW Police to host the event, however the NSW Police Commissioner denied the application on safety grounds and took the matter to the Supreme Court.
After a multi-day day hearing, Justice Desmond Fagan agreed with the police commissioner's safety concerns.
He said while there was no indication participants would take part in any violent or anti-social behaviour, there was a degree of unpredictability.
The community has the right to peacefully assemble and protest, but without a Form 1 protesters could be charged by police for offences including obstructing people, vehicles, or vessels.
The organised protest follows dozens of disruptions to coal trains in the Hunter this year. (ABC Newcastle: Lillian Watkins)
Protests to continue, on land
Rising Tide has been promoting their land and water "protestival" in Newcastle for months, but it was only able to receive a permit for the land-based portion of its demonstration.
It has estimated more than 1,000 people will participate in the overall event, with more than 500 already encamped on their land-based site.
Rising Tide held a similar protest last year. (AAP: Rising Tide )
More than 100 people were charged in relation to last year's protest at Newcastle Harbour.
The protest is expected to continue on Friday.
The group has recruited Midnight Oil frontman Peter Garrett who will perform at the event on Saturday.