Chinese Control of Darwin Port Becomes Key Issue in Australian Elections

The latest Chinese port operation to come under pressure is Australia’s Port of Darwin which is now a headline issue in the upcoming federal elections. Today, April 4, Australia’s Prime Minister Anthony Albanese declared during a radio interview that Darwin “should be in Australian hands.” Concerns have been brewing over the now decade-old deal that ceded control of the port to a Chinese company.

Located on Australia’s north central coast the port while small in scope is seen as a strategic asset. It is Australia’s closest port to Asia and is playing an increasingly significant role in Australia’s expanding offshore oil and gas sector. In the port’s last fiscal year ended in 2024, it reported imports of more than 1 million kiloliters of petroleum products, handling over 280,000 head of cattle and being a major RoRo import operator for cars. It is a base to U.S. Marines and also a popular cruise ship destination.

Faced with financial difficulties, the government of Australia’s Northern Territories put out a public tender in 2014 and the following year concluded a deal with a Chinese company Landbridge. The operator gained a 99-year lease for the port and promised to make investments. Reports indicate that the U.S. with then-President Barack Obama voiced concerns over the Chinese deal.

Accusations have been raised about the operations with the Australian opposition party contending that Landbridge has failed to make the promised investments. In 2024 there were questions when Landbridge’s parent company went into default on an A$107 million (US$65 million) bond.

The company said in November 2024 that the “underlying operations of Darwin Port have improved significantly,” while reporting a nearly 50 percent increase in EBITDA earnings for FY 24. It blamed non-cash charges for an A$34 million (US$21 million) loss before taxes and said “Darwin Port remains a key asset of the group.”

Prime Minister Albanese announced the federal government is in talks with private pension fund investors on a possible deal to take over the operational lease for the port. He said the options were private investment or the federal government taking over the port. When asked in 2023, Albanese had ruled out a similar move to regain control of the port.

Opposition leaders have already spoken publicly about the need for the federal government to take control back from the Chinese. Media reports indicate they were going to make a formal public statement this coming Sunday, April 6, ahead of the May 3 federal elections.

Media reports said in March the federal government had discussions with the new government of the Northern Territory over possible steps. This came after Federal Labor MP Luke Gosling also made a public statement saying the federal government wanted to “return the port to Australian hands.”

Responding to the statements and media speculation, Terry O’Connor, Non-Executive Director for Landbridge in Australia, issued a statement in March calling the minister’s statement “a surprise,” and he asserted “Landbridge and Darwin Port have not been involved in any discussions on the matter.” He said they would engage with the Northern Territory government but the “port is not for sale.”

A local news outlet, NT News, however early in March reported Landbridge “could be willing to sell the port’s lease, but was asking A$1.3 billion (US$795 million). Reports indicate that is nearly A$800 million (approximately US$490 million) more than it paid in 2015 for the 99-year lease.