The Port of Darwin in northern Australia is under the microscope once again as both major parties promise to divest the piece of infrastructure from its Chinese owners.
The contentious 99-year lease of the port to Chinese company Landbridge has been the subject of on-and-off inquiries, raising the question of whether Australia should cut out its Chinese owners. Landbridge is heavily linked to the Chinese Communist Party (CCP).
The debate took on new life on April 4 during the federal election campaign, after News Corporation newspapers revealed the Coalition would be looking at terminating the lease if it won office.
Their plan involves appointing a specialist advisor to find a new owner for the Darwin Port. If one cannot be found in six months, then the government would buy back the lease.
Prime Minister Anthony Albanese pre-empted the opposition leader’s formal announcement, calling into ABC Radio in Darwin in the afternoon.
“We want it to be in Australian hands ... we’re prepared to go down the road of taxpayer direct involvement,” he said, blaming the former territory Country Liberal Party government for selling off the lease.
The prime minister also said there were economic reasons for the port to be owned locally.
“Landbridge have not had the investment into the port that’s required to bring it up to scratch,” he said.
Albanese said the move was not an election stunt.
“It’s something that we have had a consistent view on ... we opposed it at the time [it was leased],” he said, when he was shadow infrastructure minister.
However, when in power, a several months-long review was ordered that concluded that any national security threat could be managed.
“The review considered the findings and outcomes of these 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,” the Department of the Prime Minister and Cabinet said.
“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.”
Darwin Port, an important gateway and strategic hub for Australia, was leased to Landbridge in 2015 for 99 years at a price of $506 million (US$363 million). Even former U.S. President Barack Obama expressed concerns about the lease.
The move by the Albanese government not to cancel the lease also came at a time when Australia was trying to “normalise” relations with the CCP.
The CCP had begun lifting trade sanctions on Australian exports to China.
In 2020, the CCP began its economic coercion after the former Morrison government called for an international investigation into the origins of COVID-19.
Meanwhile, Landbridge’s local director Terry O'Connor said there had been no discussions with the federal government or any buyer.
“As far as the owner is concerned, there’s no intention to sell the port and there’s been no negotiations around selling the port,” O'Connor told the ABC.
“We’ve said repeatedly that the port is not for sale.”
