Peter Dutton vows to terminate China-lease of Darwin Port

It is nearly certain that a Beijing-controlled 99-year lease to run the Port of Darwin will be terminated.

Liberal leader Peter Dutton and Prime Minister Anthony Albanese have vowed to terminate a Beijing-controlled 99-year lease to run the Port of Darwin and return the critical infrastructure to an Australian Government-approved operator.

The decision means the Chinese-owned company that runs the Port is set to be stripped of the lease regardless of who wins the election.

And if agreement can’t be reached to find an Australian operator, they will compulsorily acquire the Port from Landbridge as “a last resort.” 

A Beijing-controlled 99-year lease to run the Port of Darwin will be almost certainly be terminated.

Accusing the Albanese Government of creating uncertainty by tiptoeing around the issue while refusing to take concrete action, Mr Dutton said, “Only a Coalition Government will end the uncertainty regarding the Port of Darwin once and for all.”

“A Dutton Coalition Government would not permit the lease of the Port to any entity that is directly or indirectly controlled by a foreign government, including any state-owned enterprise or sovereign wealth fund,’’ Mr Dutton told news.com.au.

“We will appoint a specialist commercial adviser to work with the Northern Territory Government and officials from the Departments of Treasury, Finance, Defence and Infrastructure to provide advice and engage with potential new operators of the Port.

Peter Dutton was set to announce the news later tonight. Picture: Sam Ruttyn

“If a private lease cannot be facilitated within six months of the process commencing, as a last resort, we will act to acquire the lease interest in the Port using the Commonwealth’s compulsory acquisition powers.

“Under this course of action, the Australian Government would compensate Landbridge Group.”

Ahead of Mr Dutton’s announcement that was originally embargoed for Friday night, Mr Albanese jumped on Darwin radio to announce that he also wanted to get the Port of Darwin “back into Australian hands.”

The surprise interview suggested Labor had caught wind of the Liberals planned announcement and wanted to gazump the Opposition leader as he was flying to Darwin. 

“We’ve been working on this for some time,” Mr Albanese said.

Mr Albanese said the government would enter into negotiations to buy back the port if a private buyer cannot be found.

The PM said he hoped an Australian superannuation fund may take over the lease.

The Port of Darwin is currently run by the Landbridge Group, a Chinese-owned, private multinational company headquartered in Rizhao, Shandong Province.

Former NT Chief Minister Michael Gunner speaking with Landbridge Group chairman Ye Cheng. Picture: Lauren Roberts

Landbridge Chairman Ye Cheng has strong links to the PRC party-state as a member of the 12th National CPPCC Committee, a PRC united front body, in which he represents the All China Federation of Taiwan Compatriots.

The Port of Darwin is defined as a critical infrastructure asset under the Security of Critical Infrastructure Act 2018, which the Coalition introduced.

“As such, any action involving foreign investment requires formal Commonwealth approval,’’ Mr Dutton said.

How the saga unfolded

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.

Darwin Port

While the sale reportedly took the Commonwealth by surprise, Mr Dutton claims it had no role in the lease or ability to stop it using foreign investment approvals processes at the time.

Only after the sale did the Coalition Government strengthen Australia’s Commonwealth laws so that state and territory government asset sales come under Foreign Investment Review Board review.

Former Liberal MP Andrew Robb’s role

Former Australian trade minister Andrew Robb walked straight out of parliament and into an $880,000-a-year job with a billionaire who owns Landbridge in 2016.

As part of the deal, Mr Robb, the architect of the China-Australia Free Trade Agreement, began consulting with Ye Cheng the day before the July 2 federal election last year.

Australia's former Prime Minister Tony Abbott looks on as Chinese Commerce Minister Gao Hucheng and Australia's former Trade Minister Andrew Robb sign a free trade agreement (FTA) between the two countries in Canberra on June 17, 2015. Picture: AFP

The arrangement, uncovered by a Fairfax Media-Four Corners investigation, involved monthly payments of $73,000 (including GST) to Mr Robb starting on July 1, 2016. 

Mr Robb later quietly quit his $880,000 per annum consultancy before a deadline for lobbyists for overseas state interests to sign up for Australia’s new foreign influence register.

What the Albanese Government says

Expectations of a fresh bid to end a Chinese company’s control of Darwin Port have grown in recent months.

Recently, the prime minister insisted he would never have “flogged it off in the first place”, a reference to the sale during the tenure of the Turnbull government.

“We opposed the sale of the port of Darwin. We opposed it at the time, we thought that was unwise,” Mr Albanese said.

NCA 2025 FEDERAL ELECTION Labor BUS. DAY 7 04/04/2025 Prime Minister Anthony Albanese on the campaign trail In NSW., Australian Prime Minister Anthony Albanese is visiting Daily Telegraph's Western Sydney Future Forum in Blacktown. The Prime Minister holds a Building Australia Press Conference after the forum with Education Minister Jason Claire, Picture: Jason Edwards / NewsWire

“I will have more to say over the course of this campaign”.

Labor MP Luke Gosling who holds the seat of Solomon has also argued Darwin port should be returned to Australian hands.

“The fact is, shifting geopolitical landscapes, economic priorities and security concerns can dramatically alter relationships between nations,” Mr Gosling said.

Last year, a PwC audit of the Darwin Port lease revealed Landbridge had made a net loss on the operation of more than $34 million in the 2023-24 financial year.

What Landbridge says

In a statement at the time, Landbridge insisted the Darwin Port operation was a “long-term investment” that has “reported record operational performance this year”.

“Landbridge and Darwin Port have not been involved in any discussions with the federal government concerning our lease arrangements,” says Terry O’Connor, the non-executive director for Landbridge in Australia.

“Landbridge considers the Port a long-term investment that has reported record operational performance this year. We expect this growth to continue in the future.”