The future of the Darwin Port, currently under the control of Chinese company Landbridge through a 99-year lease acquired in 2015, hangs in the balance as financial and political challenges mount. The Northern Territory Treasurer, Bill Yan, has called for clarity from the federal government regarding the port's future amid Landbridge's financial difficulties and political discussions about potential Australian ownership.
Landbridge faces a net loss in its investment for the 2023-2024 financial year and is grappling with a $107 million debt that it struggles to manage. In response, the company has announced plans to sell off assets throughout 2025 to address its debt obligations. Despite these financial woes, Landbridge's non-executive director in Australia, Terry O'Connor, maintains that the company has achieved "record operational performance this year."
High-level discussions between the Northern Territory and federal governments are set to take place this week. Representatives will convene in Canberra on Thursday to deliberate over the port's future. This meeting follows comments from Federal MP Luke Gosling, who suggested that the port could be transferred back to "Australian hands" through a public-private partnership. Gosling claims to have engaged with institutional investors, including industry super funds, interested in purchasing the lease from Landbridge.
However, Landbridge has categorically denied that the port lease is for sale. Terry O'Connor expressed surprise at the Northern Territory Treasurer's comments, highlighting that Landbridge has not been involved in any discussions regarding a sale.
"The minister's announcement today has come as a surprise and I can confirm that Landbridge and Darwin Port have not been involved in any discussions on the matter." – Terry O'Connor
O'Connor also addressed concerns about security at the port, emphasizing that it undergoes regular checks.
"We go through annual security audits, we go through audits when involved in visiting vessels." – Terry O'Connor
Despite these assurances, concerns linger about an impending insolvency event that could potentially lead to a change of control at the port.
"An insolvency event could occur, potentially resulting in a change of control event." – Landbridge
Bill Yan has accused Luke Gosling of generating "mass uncertainty" with his public statements. Prime Minister Anthony Albanese has also weighed in on the issue, stating that if the federal government intends to purchase the port, they need to provide certainty.
"It's time for Anthony Albanese to stump up — if he's going to do it — stump up the money." – Bill Yan
Gosling, on the other hand, sees the situation as an opportunity for a commercial decision that could favor Australian interests.
"This is a commercial decision where Landbridge looks like it's a willing seller, and I know through my work talking to institutional investors and others, that there are willing buyers for the port as well." – Luke Gosling
Terry O'Connor remains skeptical of these political maneuvers, attributing them to election-time rhetoric.
"At no stage over the last 10 years has there been any practical or real concerns in relation to the Darwin Port." – Terry O'Connor
"It's a federal election time, and we've seen this thrown up the last federal election before it." – Terry O'Connor
"We become a political football that gets kicked around for a number of months, and we'll probably get kicked around after the election." – Terry O'Connor
The Northern Territory government has been aware of Landbridge's solvency issues since November. As discussions unfold this week between Northern Territory and federal officials, stakeholders are eager for a resolution that will provide stability and clarity regarding ownership and operations at Darwin Port.
