Latest news with #Landbridge
ABC News
7 days ago
- Business
- ABC News
Darwin Port owner defends 99-year lease as future hangs in the balance
Landbridge, the Chinese-owned business that operates the Port of Darwin, is defending itself against what it calls a campaign of 'myths and mistruths'. The company wants to retain control of the Port while the federal government has vowed to end its lease, which has long been controversial. Matt Garrick reports from Darwin.
ABC News
15-06-2025
- Business
- ABC News
Australian government negotiates deal for Darwin Port as Landbridge defends lease
Out at the Darwin Port, the Australian boss of embattled Chinese-owned firm Landbridge pushes back against "myths and mistruths" he says his company has faced for a decade. From accusations of sinister links to China's People's Liberation Army (PLA), to warnings of influence exerted from within the nation's ruling Chinese Community Party. Landbridge Group, the company that holds a 99-year lease on the northern Australian port, granted 7.30 rare access to visit the facility that's now in the crosshairs of a geopolitical debate. The company's non-executive director for Australia, Terry O'Connor, attests they've been targeted by lies, aimed at firming up a narrative that the Port of Darwin leaseholders needed to be ousted. "We've seen a bit of hysteria around the fact that it's owned by a private Chinese individual [billionaire Ye Cheng]," Mr O'Connor said. "There's been many myths about the ownership process. "One that continues to amuse me is the perception that we're somehow connected with the People's Liberation Army in China — we're not. "If there's any alliance, our alliance is with the Australian military more than anybody else, let alone the PLA." Mr O'Connor has blamed political agendas in Canberra for fuelling the rhetoric. He took aim at recent commentary by Deputy Prime Minister Richard Marles, who late last month erroneously described Landbridge as a "Chinese government-controlled entity". It comes as the Albanese government moves to fulfil its federal election promise to get the Darwin Port lease "back under Australian control". He said Mr Ye's connections to the Chinese government were standard for business leaders in China. "I don't think there's any doubt he is connected with the Chinese party given his position in the Chinese business world, he certainly has connections within the Chinese government," he said. "[But] does that influence what happens here at the port on a day-to-day basis, a month-to-month basis, or a year-to-year basis? "The answer is no." Despite Mr O'Connor's defence of his company, Landbridge's days with the port may be numbered. The Australian government is working behind the scenes to find a buyer and strip the Darwin Port lease from Landbridge, and according to federal sources, it may happen sooner rather than later. Federal Infrastructure Minister Catherine King declined an interview on the matter, as the government negotiates with private companies interested in taking over the lease. For the first time, Landbridge has indicated it would be open to discussions around selling the asset. "We haven't investigated what a right price is, to be honest," Mr O'Connor said. If a buyer isn't found, the government has indicated it would be open to compulsorily acquiring the lease, which would likely cost taxpayers hundreds of millions of dollars. The government's election promise was made 10 years after Landbridge won the port lease from the Northern Territory government in a competitive tender process, in 2015. Since then, the deal has been a magnet for national security debate, most pointedly after concerns were raised by then-US president Barack Obama to Australia's then-prime minister, Malcolm Turnbull. Despite the controversy, there's been two federal reviews, a parliamentary inquiry and public statements made by ASIO — none of which have made public findings of a security threat. Darwin-based defence expert Victor Abramowicz described the recent election promise as "national security chest-beating". However, he acknowledged that icy relations between Australia and China had likely been a factor in the decision, including instances earlier this year where Chinese warships entered Australian waters. "Beijing certainly hasn't done itself any favours," he said. "They put sanctions on Australian barley and wine and meat … they then sent the ships around. "This was all quite tertiary, it wasn't directly related to the port. Chinese Ambassador to Australia Xiao Qian declined an interview request for this story, but he's previously said any move to take back the Darwin Port lease would be "ethically questionable". The Albanese government hasn't said which companies are in the running to take over the port. But a number are said to be circling the facility. A joint bid is believed to be in the works between freighting giant Toll Group and US private equity firm Cerberus Capital Management, which has strong links to the Trump administration. Toll Group declined to confirm the matter, and Cerberus did not respond to 7.30's request for comment. The government has also said it's speaking with superannuation firms over the asset's future. In a statement, the infrastructure minister said the government would "work through proposals in a manner consistent with our approach to any proposed foreign investment in Australia". "[We are] working closely with the Northern Territory government on next steps," Ms King said. The NT's Labor Opposition Leader, Selena Uibo, said the current uncertainty surrounding the port's future was creating a similar situation to the one seen in 2015. NT Treasurer Bill Yan said the port's future was "ultimately a matter for the federal government". "As the landholder of Darwin Port, we continue to work with the Commonwealth in good faith to ensure that national interests are upheld," he said.
Bloomberg
29-05-2025
- Business
- Bloomberg
Darwin Port Tussle Highlights China-US Tension
Good morning, it's Angus here in Sydney. Here's what you need to know as we round out the week. Today's must-reads (listens): • Our podcast on the Port of Darwin showdown • How many RBA rate cuts? • Natural gas sector grapples with red tape In 2015, Chinese company Landbridge was awarded a 99-year lease over the Port of Darwin. Now, Australia wants to take it back and put it into local hands. This week on the Bloomberg Australia podcast, Rebecca Jones speaks to government reporter Ben Westcott and senior editor Chelsea Mes about why Beijing is speaking out against that decision, and what role the US might play.
Business Times
29-05-2025
- Business
- Business Times
Australia aims to avoid Panama repeat in China port showdown
[CANBERRA] Prime Minister Anthony Albanese is confronting a fresh diplomatic dilemma with China: How to fulfil a pledge to regain control of a strategic port without jeopardising improved relations with his country's largest trading partner. Ahead of an election earlier this month, Albanese promised to return to Australian control the Port of Darwin from Chinese company Landbridge Group. It was awarded a 99-year lease in 2015 by the Northern Territory government in a move that sparked criticism from an array of politicians in Australia and in the US, which uses a nearby military training facility. China is Australia's biggest trading partner by far and previously expressed anger over pressure from the Trump administration concerning the Panama Canal, which resulted in a potential sale by a Hong Kong-based conglomerate of its two Panama port operations – a deal Beijing has said it will review. Albanese potentially faces a similar backlash from the Chinese government if Beijing perceives it's being treated unfairly at the Port of Darwin. 'The key is whether it's a commercial or ostensibly a commercial transaction or not,' said Richard McGregor, a senior fellow at Sydney-based Lowy Institute, who serves on the board of a government body advising on relations with China. A simple buyout of Landbridge by an Australian company would be significantly less controversial than a sale to a US business or an attempt to cancel the lease and nationalise it, he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Speaking on Wednesday, Albanese appeared to pour some cold water on the idea of an acquisition by a US company while restating his desire to get the port back under Australian control. 'It's in the national interest for it to be in Australian hands,' Albanese said at a press conference in Darwin. 'But if there are other proposals, we'll work those through. But we'll work those through on a commercial basis.' Terry O'Connor, a non-executive director for Landbridge in Australia, said on Wednesday there's been interest among investors in Australia and abroad on whether the port is for sale. They have also received calls from international investors, some of whom are in talks with the local administration, about whether the national government's plan to acquire the port is real, he said. Like many countries in the Asia-Pacific region, Australia is caught in a bind. The US is the largest single investor in Australia and the country's main security ally, but China is by far its biggest export market. High stakes China's government would like for its firms to be able to invest more into Australia, especially in the minerals sector, but Canberra has blocked a series of investment proposals since the two signed a free-trade agreement more than a decade ago. That raises the stakes for how Albanese manages the port dispute. Bilateral relations collapsed during the pandemic, when China imposed tariffs and trade barriers on Australian goods, but have gradually improved since Albanese first took power in 2022. Xiao Qian, China's ambassador to Australia, has warned Canberra to proceed cautiously in its handling of the lease, which he said was awarded to Landbridge 'through an open and transparent bidding process'. He made the point of personally visiting Darwin in the past week to press Beijing's request for Landbridge to be treated fairly. While Landbridge has been reported to be having financial difficulties, Chinese state media also cautioned against forcing Landbridge to give up the lease. A Global Times editorial this week said the Australian government should 'prioritise the broader picture, uphold the spirit of contract, return to the rule of law, and stop distorting economic cooperation with political bias.' The port is Australia's northernmost maritime facility, positioned close to South-east Asia. During the election campaign, Albanese raised the possibility of nationalising the facility in case a private owner couldn't be found. US private equity company Cerberus held an initial meeting with the Port of Darwin to discuss taking over the lease, while other Australian entities including large pension funds are also running a ruler over the numbers. 'Far from ideal' Since 2001, Chinese firms have increasingly invested in overseas ports. That's often been portrayed as part of President Xi Jinping's 'Belt and Road Initiative' to build up trade links between China and the rest of the world, according to Zongyuan Zoe Liu at the Council at Foreign Relations, who tracks such investments. Some of those investments have become controversial or been criticised as a vehicle for greater Chinese influence, although some, such as the purchase of Piraeus Port in Greece by Chinese shipping giant Cosco Shipping Holdings, can be seen as a success, she said in a recent interview. While the Port of Darwin has not attracted the same level of attention from Washington as the Panama Canal, that does not mean that the US is not watching closely 'For many of our allies and partners, the current status quo is far from ideal,' said Luke Gosling, a military veteran and lawmaker for Darwin in Albanese's Labor government. 'That has fed into obviously our decision-making around making that commitment that the Port of Darwin come back into Australian hands.' BLOOMBERG
Bloomberg
29-05-2025
- Business
- Bloomberg
The Global Tussle For The Port of Darwin
On this week's Australia Podcast: Host Rebecca Jones speaks to government reporter Ben Westcott and senior editor Chelsea Mes about the strategic significance of the Port of Darwin. Never miss an episode. Follow The Bloomberg Australia Podcast today. In 2015, Chinese company Landbridge was awarded a 99-year lease over the Port of Darwin. Now, Australia wants to take it back and put it into local hands. This week on the podcast, Rebecca Jones speaks to Ben Westcott and Chelsea Mes about why Beijing is speaking out against that decision, and what role the US might play.
