Experienced sailor, musician and part-time model Craig William Lembke is accused of arranging the importation of the yacht that was used to smuggle 700 kilograms of cocaine into Australia and posed a considerable flight risk, a court has heard.

Details of Mr Lembke's alleged involvement in the $245 million cocaine importation were revealed on Thursday in Newcastle Local Court when the 47-year-old saxophonist applied for bail, offering an $800,000 surety that his solicitor, Mark Hanlon, said would mitigate any concerns he would flee the jurisdiction.

Craig WIlliam Lembke looked dishevelled and tired when he appeared in court via audio visual link from Cessnock Correctional Centre on Thursday.

Mr Lembke, fellow musician Kent Jackson, 63, and Dennis Bath, 68, were arrested last Wednesday after the biggest drug seizure in the Hunter's history was discovered in the twin hulls of a yacht moored at Toronto.

The trio have all been charged with importing a commercial quantity of a border controlled drug and face the prospect of life in jail. Mr Lembke, looking dishevelled and tired, appeared in court via audio visual link from Cessnock Correctional Centre on Thursday.