Australia Approves Chinese Company’s 99-Year Lease on Darwin Port, Deeming it Safe and Competitive
Australia has announced its approval of a 99-year lease held by Chinese company Landbridge on the northern port of Darwin, after a comprehensive security review. The decision comes amidst growing concerns about foreign investment and national security. In the statement released by the prime minister’s department, it was stated that there was no need to cancel or modify the lease, as it was deemed to be safe and would not compromise the country’s defense strategy.
The Australian government reassured its citizens that their safety would not be compromised while emphasizing the importance of Australia as a competitive destination for foreign investment. Continuous monitoring of security arrangements will be carried out at the northern port, which is geographically close to Asia and serves as a commercial wharf and cruise ship terminal operated by Landbridge.
It is worth noting that this decision follows a diplo- matic dispute between China and Australia, during which China criticized Australia for blocking Chinese investment in infrastructure on national security grounds. The 99-year lease of the Darwin port to Landbridge was subjected to scrutiny in 2021 as the Australian government strengthened its foreign investment screening procedures. After winning the election in 2022, Prime Minister Anthony Albanese’s Labor government initiated a second review involving defense, foreign affairs, and security agencies.
This announcement comes ahead of Prime Minister Albanese’s upcoming visit to Washington and an expected visit to China later this year. Landbridge secured the lease through a bidding process in 2015, paying A$506 million ($390 million) for the deal. Notably, this contract was awarded shortly after the United States deployed a rotational group of U.S. Marines to Darwin, underscoring the strategic importance of the region.
Considering the increasing military presence in northern Australia due to China’s military buildup, there have been speculations about the government’s potential plans to build a second port in the Darwin harbor for military purposes. Peter Dean, director of foreign policy and defense at the United States Studies Centre in Sydney, suggested that a dedicated wharf solely for naval use might be considered. It should be noted that the port leased by Landbridge is physical infrastructure, which differs from sensitive areas such as power grids and 5G networks, where China has faced investment restrictions in the past.
Landbridge and Darwin Port have both released statements, expressing their belief that there are no security concerns surrounding the port’s operations as it complies with Australian law and the terms outlined in the transaction documents. This development comes as Australia continues to advocate for the removal of trade blocks imposed by China on its wine industry, with a World Trade Organization ruling on the dispute expected soon.
In conclusion, Australia’s approval of the 99-year lease held by Landbridge on the Darwin port underscores the government’s confidence in the security arrangements and its commitment to maintaining competitiveness in attracting foreign investment. As Australia navigates its diplomatic relationships with China and the United States, ensuring the nation’s strategic interests and defense capabilities will remain a top priority.
