Port Darwin Explained

Port Darwin
Pushpin Map:Australia
Country:Australia
Location:Darwin, Northern Territory
Coordinates:-12.4708°N 130.8483°W
Operated:Darwin Port Operations
Type:Coastal natural
Berths:5
Wharfs:4
Website:https://www.darwinport.com.au/

Port Darwin is the port in Darwin, Northern Territory, in northern Australia. The port has operated in a number of locations, including Stokes Hill Wharf, Cullen Bay and East Arm Wharf. Port Darwin is the most northerly port in the country. In 2015, a 99-year lease was granted to the Chinese-owned Landbridge Group, a transaction that has since ignited significant national security concerns.

Locations

Stokes Hill Wharf operated as the main location of Port Darwin, and has had three wharves.

East Arm Wharf, opened in 2000. Panamax sized ships of a maximum length of 274 metres and a DWT of up to 80,000 tonnes are able to use the location.[1]

Privatisation

Following the 2012 election of the Country Liberal party, the Territory sought to raise funds for unspecified purposes through the sale of public assets, including the Territory Insurance Office and Darwin Port.[2] In order to accomplish the latter, the Territory made a request for expressions of interest in late 2014 and early 2015, resulting in thirty-three companies signalling their interest.[3]

In October 2015, the Chinese-owned Landbridge Group won the bid for a lease of Port Darwin. The then Country Liberal-controlled Northern Territory Government under then Chief Minister Adam Giles granted the company a 99-year lease for A$506 million.[4] [5] The contract price is more than 25 times the profit the port had earned over the preceding two years, and Landbridge also promised to invest A$200 million over a 25-year period.[6] Shandong Landbridge Group is a privately held company with headquarters in the city of Rizhao, Shandong Province, China, which is owned by Ye Cheng, a billionaire with close ties to the Chinese Communist Party.[6] [7] [8]

The details of the unsuccessful bids were not disclosed, with the government citing commercial-in-confidence reasons, but sources conflicted over the nature of these bids. Some sources stated that the bid from the Landbridge group was the highest by a significant margin, while others stated that two bids, one from a European company and the second from an Australian were comparable. It was hoped that Landbridge's bid would result in new trade routes opening up for the Territory's cattle, mining and gas industries.[9]

Security concerns

Concerns have been expressed over this leasing arrangement due its strategic significance as part of China's Belt and Road Initiative.[10] [11] [12] [13] [14] Concerns have also been expressed over the proximity of the port to a base where United States Marines are stationed on a rotational basis and to the Darwin International Airport, which is used jointly for military and civilian purposes.[6] [15]

In June 2019, development of a port at Glyde Point, north of Port Darwin, to be utilised by both military and commercial interests, was suggested as a 'counterbalance' by Federal Liberal Party MP and chair of the Parliamentary Joint Committee on Intelligence and Security Andrew Hastie.[16]

In August 2019, a proposal was launched by Federal Labor MP Nick Champion to re-nationalise the port, thereby ending Chinese control.[17]

A 2021 review of the leasing arrangements found there were no national security grounds to overturn the lease. In October 2023, the federal government announced it will not cancel Landbridge's lease after another review.[18] The announcement brought to an end to an eight-year saga regarding Chinese control of the port.[18]

See also

References

-12.4708°N 130.8483°W

Notes and References

  1. http://www.darwinport.nt.gov.au/port-trade-development/east-arm-wharf Darwin Port Corporation > East Arm Wharf
  2. Web site: Davidson . Helen . NT government assets privatised without knowing where proceeds will go . The Guardian . 19 May 2021 . en . 2015-12-16.
  3. Web site: Walsh . Christopher . 'A seriously dumb idea': Why did the NT lease Darwin's port to China? . www.abc.net.au . 19 May 2021 . en-AU . 2019-03-11.
  4. News: Robb joins Chinese company with control of Darwin Port. 26 June 2017. ABC News. 30 October 2016. en-AU. https://web.archive.org/web/20171106214120/http://www.abc.net.au/news/2016-10-30/andrew-robb-joins-chinese-company-with-control-of-darwin-port/7978648. 6 November 2017. live.
  5. News: Coalition defends Andrew Robb after revelation he started job while an MP. Chan, Gabrielle Chan. The Guardian. 6 June 2017. 26 June 2017. https://web.archive.org/web/20170624004125/https://www.theguardian.com/australia-news/2017/jun/06/coalition-defends-andrew-robb-after-revelation-he-started-job-while-an-mp. 24 June 2017. live.
  6. Web site: Concerns Raised As Australian Port Rolls Out Red Carpet for Chinese Investment. Tanaka. Yasuto. 2019-02-02. Japan Forward. en-US. 2019-06-07. https://web.archive.org/web/20190607202758/https://japan-forward.com/concerns-raised-as-australian-port-rolls-out-red-carpet-for-chinese-investment/. 7 June 2019. live.
  7. Web site: China's 'invisible billionaire' – the Port of Darwin's new owner. 2015-11-22. Australian Financial Review. en. 2019-06-07. https://web.archive.org/web/20190607142555/https://www.afr.com/news/world/chinas-invisible-billionaire--the-port-of-darwins-new-owner-20151122-gl4rtn. 7 June 2019. live.
  8. Web site: ASIO warned politicians about taking cash from Huang Xiangmo, Chau Chak Wing. 2017-06-05. Australian Financial Review. en. 2019-06-08. https://web.archive.org/web/20190411003416/https://www.afr.com/news/politics/asio-warned-politicians-about-taking-cash-from-huang-xiangmo-chau-chak-wing-20170605-gwktc9. 11 April 2019. live.
  9. News: Gibson . Jano . 7 May 2022 . Why did the Northern Territory lease Darwin Port to Chinese-owned company Landbridge? . . 20 October 2023.
  10. News: Senior Defence official raises security concerns over Darwin port lease to Chinese-owned company Landbridge. Uhlmann, Chris. 15 October 2015. ABC News. 26 June 2017. https://web.archive.org/web/20171106225740/http://www.abc.net.au/news/2015-10-15/adf-concerned-over-darwin-port-sale-to-chinese-owned-company/6855182. 6 November 2017. live.
  11. News: Andrew Robb's secret China contract: money for nothing . 6 December 2017 . 5 December 2017 . https://web.archive.org/web/20171205225405/http://www.smh.com.au/federal-politics/political-news/andrew-robbs-secret-china-contract-money-for-nothing-20171205-gzzaq5.html . 5 December 2017 . live.
  12. Web site: Darwin port's sale is a blueprint for China's future economic expansion. Garrick. John. December 6, 2018. The Conversation. en. 2019-06-07. https://web.archive.org/web/20190607141848/http://theconversation.com/darwin-ports-sale-is-a-blueprint-for-chinas-future-economic-expansion-108254. 7 June 2019. live.
  13. Web site: Can the Darwin Port's 99-year lease to China be reversed?. 2019-03-19. ABC News. en-AU. 2019-06-07. https://web.archive.org/web/20190613060454/https://www.abc.net.au/news/2019-03-19/can-darwin-port-99-year-lease-china-be-reversed-andrew-robb-role/10912478. 13 June 2019. live.
  14. News: How the sale of Darwin port to the Chinese sparked a geopolitical brawl. Smee. Ben. 2016-12-17. The Guardian. 2019-06-07. Walsh. Christopher A.. en-GB. https://web.archive.org/web/20190607143136/https://www.theguardian.com/australia-news/2016/dec/18/how-the-sale-of-darwin-port-to-the-chinese-sparked-a-geopolitical-brawl. 7 June 2019. live.
  15. News: Cherney . Mike . 2022-09-21 . Chinese Port Lease Near U.S. Troops’ Australian Training Ground Draws Fresh Scrutiny . en-US . . 2022-09-22 . 0099-9660.
  16. Web site: New Darwin port would 'counterbalance' 99-year Chinese company lease: Liberal MP. Gibson. Jano. 2019-06-24. ABC News. en-AU. 2019-06-27. https://web.archive.org/web/20190701180117/https://www.abc.net.au/news/2019-06-24/new-darwin-port-could-counterbalance-landbridge-mp-hastie-says/11241820. 1 July 2019. live.
  17. News: Push for Darwin Port to be nationalised to end Chinese ownership of strategic northern asset . ABC News . 4 August 2019 . 5 August 2019 . https://web.archive.org/web/20190805025206/https://www.abc.net.au/news/2019-08-05/push-to-nationalise-darwin-port/11382422 . 5 August 2019 . live .
  18. News: Dziedzic . Stephen . 20 October 2023 . Federal government will not cancel Chinese company Landbridge's Port of Darwin lease . . 20 October 2023.

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