Australian officials say Chinese coal carrier Shen Neng 1 is leaking oil and in danger of breaking apart on Great Barrier Reef

A transport ship has run aground leaking oil on the Great Barrier Reef and is in danger of breaking apart, officials said.

The Chinese coal carrier Shen Neng 1 ran aground late yesterday on Douglas Shoals, a pristine area east of the Great Keppel Island tourist resort, off the coast of Queensland, Australia. It is in a protected part of the reef where shipping is restricted.

The vessel hit the reef at full speed, nine miles outside the designated shipping lane, said Queensland's premier, Anna Bligh. A police boat was standing by to remove the 23 crew if the ship broke apart and an evacuation was necessary, she said.

Patches of oil were seen near the stricken ship early today, but Maritime Safety Queensland reported no major loss from the 950 tonnes of oil on board. "We are now very worried we might see further oil discharged from this ship," Bligh said.

Maritime Safety Queensland's general manager, Patrick Quirk, said the vessel was badly damaged on its port side. "At one stage last night, we thought the ship was close to breaking up. We are still very concerned about the ship. It is in danger of actually breaking a number of its main structures and breaking into a number of parts."

Bligh said she feared any salvage operation could spill more oil, which could reach the mainland coast within two days. Emergency crews were on standby to clean any oil that reached mainland beaches, she said.

The federal environment minister, Peter Garrett, said authorities had been working through the night to determine what risks the ship posed. "The government is very conscious of the importance of the Great Barrier Reef environment and ensuring that impacts on its ecology are effectively managed," he said.

The 230-metre bulk carrier was carrying about 65,000 tonnes of coal to China and ran aground within hours of leaving the Queensland port of Gladstone.

Conservationists have expressed outrage that such ships can travel through the reef without a pilot with local expertise. "The state government is being blinded by royalties and their shortsightedness will go down in history as killing the reef," said Larissa Waters, spokeswoman for Queensland's Green party.

Bligh said the question of when ships should require a pilot on the reef was under review because of the increase in freight traffic that will flow from new gas and coal export contracts to China. She said a separate inquiry would determine how the ship came to stray from its shipping lane.