The decision by the Australian government not to cancel the 99-year lease of the Port of Darwin to a Chinese company is a worrying development.
The Port of Darwin was leased to Landbridge Group by the Northern Territory Country Liberal government in 2015. The lease was priced at $506 million (US$320 million).
The awarding of the contract to Landbridge came just a few years after the United States posted the first of an ongoing rotation of U.S. marines in Darwin. The U.S. presence in the Northern Territory has increased since then.
The Northern Territory, Darwin in particular, is a critical element in Australia’s defence.
As regional tensions rise, it will become more so.
The current Labor government initiated a review of the lease following the 2022 election, and has the power to end the lease, particularly as it was made by a territory-level jurisdiction.
The Department of the Prime Minister and Cabinet has finalised a review into the circumstances of the lease of the Port of Darwin.
“The review found that there is a robust regulatory system in place to manage risks to critical infrastructure, including the Port of Darwin; existing monitoring mechanisms are sufficient and will be ongoing; and as a result, it was not necessary to vary or cancel the lease,” the Department concluded.
The government said it would accept that advice.
“Monitoring of security arrangements around the Port of Darwin will continue. Australians can have confidence that their safety will not be compromised, while ensuring that Australia remains a competitive destination for foreign investment,” said the prime minister’s department after consulting defence and security agencies.
“The review considered the findings and outcomes of previous assessments, as well as considering whether risk management and mitigation arrangements are sufficient to protect Australia’s national security interests relating to the Port.”
Darwin is the home to significant defence assets. It is Australia’s northern base for the Navy, Air Force, and Army.
Any threat to these facilities potentially compromises the security of Australia.
The security agencies have not disclosed what monitoring mechanisms are in place and how they will continue to oversee the situation.
How will they ensure that the port is not compromised or closed down in the case of conflict? How will they ensure that sensitive communications are not compromised?
Given that Chinese corporations are subject the the directions of the Chinese Communist Party (CCP), this decision risks Australia’s security.
It is well established that the CCP regards all companies and institutions in China with both a civil and military purpose.
The fact that this decision has been released in the weeks before the prime minister visits Beijing raises legitimate questions.
Yet prior to the last election, Mr. Albanese described the Turnbull government’s approval of the lease as “a grave error of judgment.”
We can only hope his department’s reassurances prove to be true.
