Politics · Australia · 4 hrs ago
Australia may pay more than $500 million to regain control of Darwin Port
China-based Landbridge won a 99-year lease to operate Darwin Port in 2015 for $506 million.
The Northern Territory government kept a 20 per cent stake, while Landbridge received an 80 per cent share and full operational control.
Prime Minister Anthony Albanese has pledged to return the port to Australian ownership, calling it strategically important.
Experts say the government may have to pay market value, which could be more than Landbridge paid, as well as legal costs.
A dispute over the port is before an international arbitration tribunal, which could take a year or two to reach a hearing; the details of temporary legal protections are not public.
Two government reviews found no national security grounds to end the lease, which has 88 years left, and no timeline for a sale has been announced.
The government is considering public and private buyers, and says it would step in if no private Australian buyer can be found.
Australia may have to pay more than $500 million to regain control of Darwin Port, which is leased to China-based Landbridge for 99 years.
Prime Minister Anthony Albanese has pledged to return the port to Australian ownership.
A University of Technology Sydney associate professor said the government may need to pay market value, which could exceed Landbridge’s 2015 purchase price of $506 million.
Landbridge’s owner, Ye Cheng, has taken a dispute to a World Bank investment tribunal.
The Australian government has not announced a timeline for the proposed sale, and two reviews found no national security grounds to terminate the lease.
- Who
- The Australian government and Landbridge, a Chinese-owned company based in Shandong province.
- What
- Australia is seeking to return Darwin Port to Australian ownership. The cost could exceed $500 million.
- When
- Landbridge won the lease in 2015. Albanese pledged to return the port to Australian ownership during the 2025 election campaign.
- Where
- Port of Darwin, in Australia’s Northern Territory.
- Why
- Albanese said the port is a strategically important military asset and that its sale was not in Australia’s national interests.
Australian government
Landbridge
Port ownership
Australian government
The government says it is determined to return the port to Australian hands.
Landbridge
Landbridge’s owner has taken a dispute over the matter to a World Bank investment tribunal.
Lease termination
Australian government
Two government reviews found no national security grounds to terminate the lease.
Landbridge
Landbridge has pursued arbitration; its specific position is not stated in the article.
Landbridge won the bid to operate Darwin Port under a 99-year lease worth $506 million.
Albanese pledged to return the port to Australian ownership.
Albanese described the port as a strategically important military asset and said the sale was not in Australia’s national interests.
The tribunal overseeing Landbridge owner Ye Cheng’s dispute was appointed.
Emergency temporary legal protections were ordered, but their contents were not made public.
- Lease term
- 99 years
- 2015 deal value
- $506 million
- Landbridge share
- 80 per cent
- Northern Territory government share
- 20 per cent
- Remaining lease
- 88 years
- Legal case
- World Bank’s International Centre for Settlement of Investment Disputes
What people are saying
But if they want to do that, they have to give fair compensation, which is interpreted as meaning market value.
It can be millions of dollars of legal fees by the time the process has concluded.
I believe it should be back in Australian hands. That's what we're doing.
I think that was a mistake, and I'm determined that it will come back into Australian hands, and we're negotiating those issues through.