The Coalition has formally promised to return the Port of Darwin to the control of a government-approved operator should it be successful in winning election next month.
Port of Darwin is currently operated by a private company based in Rizhao city of China’s Shandong Province named the Landbridge Group – which has previously had noted connections with the Chinese Communist Party.
The Country Liberal Party leased the port to the Chinese-owned company back in 2015 for a sum of $506 million.
The port’s Chinese ownership has come under fire over the past decade due to Darwin’s position as Australia’s closest port to the rest of Asia and, therefore, its status as the northern gateway for Australasian trade.
It is also a key site for the Australian Defence Force, which holds a base next to the port.
The Coalition says it will immediately pursue a Commonwealth-approved private buyer of the site, and will take over operations if none can be found.
“In the current geopolitical environment, it is vital that this piece of critical infrastructure, which is directly opposite to the Larrakeyah Defence Precinct, is operated by a trusted, Commonwealth approved entity,” the Coalition says.
“The Port of Darwin is defined as a critical infrastructure asset under the Security of Critical Infrastructure Act 2018, which was introduced by the Coalition. As such, any action involving foreign investment requires formal Commonwealth approval.
“A Dutton Coalition government would not permit the lease of the Port to any entity that is directly or indirectly controlled by a foreign government, including any state-owned enterprise or sovereign wealth fund.
“If a private lease cannot be facilitated within six months of the process commencing, as a last resort, we will act to acquire the lease interest in the Port using the Commonwealth’s compulsory acquisition powers. Under this course of action, the Australian Government would compensate Landbridge Group.”
Labor and Anthony Albanese have also promised to secure the port’s immediate future in the run up to the federal election.
Albanese told ABC Radio Darwin that the government has already been working on a plan to deal with the port issue for an extended period of time.
“We will enter negotiations to do that, that is what we have been doing informally through potential buyers up to this point already,” Albanese said.
In addition to the cited national defence concerns, Landbridge has also been struggling under increased financial concerns in recent months.
In the nine years since the deal between Landbridge and the Territory Government was struck, the company is yet to make a profit on the site.
The Territory government was forced to contact the port operator in November 2024 following concerns it would be unable to pay for the port due to the restructuring of its $107 million bond for the lease.
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