Giles announces Port of Darwin leased for 99 years for $506 million

THE Port of Darwin has been leased for 99 years to Chinese owned Landbridge Group for $506 million, Chief Minister Adam Giles has announced

Darwin Port Corporation Administration building at 11 Export Drive Berrimah there at 10:20 to get a security briefing. Please...

THE Port of Darwin has been leased for 99 years to Chinese owned Landbridge Group for $506 million, Chief Minister Adam Giles has announced.

Mr Giles, who surprised everybody with the announcement less than two weeks after expressions of interest closed, said the biggest advantage to the NT is the private investment in the Port that will grow the economy and open up better trade links with Asia for the future.

“What we want to make sure is that it’s about long term jobs and investment in the Northern Territory,” Mr Giles said.

Landbridge has pledged to spend $35 million in the first five years to expand the Port and $200 million over a 25-year period.

The company’s Australian infrastructre director Mike Hughes said the group had the connections in China to increase trade, expand the port and get shipping prices down through economies of scale.

“We believe we’ll put Darwin on the map in China for Chinese businesses. We are the right partner for the Northern Territory,” he said.

A condition of the agreement will see the NT Government take in 15 per cent of any so-called “super profits” — revenue earned over annual projections.

The Government also sought to keep 20 per cent of the Port in Australian hands, for now with the NT Government. But Landbridge must find an Australian company to take the 20 per cent share within five years.

Landbridge has confirmed its intent to maintain the established workforce at the Port of Darwin and that there will be no forced redundancies during the term of the current Enterprise Agreement (which terminates in June 2018).

Despite assurances that jobs will be protected, the Maritime Union of Australia says Port workers were not consulted at all about the sale and have called on the Giles Government to ensure that current working conditions for public employees is enshrined in legislation for the term of the lease, not just until 2018.

“It’s a commitment like the one that was made to TIO and Bus Link workers who were pretty much thrown out the door as soon as the ink was dry on the paper,” said MUA spokesman Thomas Mayor. “Talk is cheap.”

Labor leader Michael Gunner called the lease a short-sighted “cash grab” that failed to seek private investment while maintaining control of the Port.

“This is nothing more than another one-off cash grab by the CLP government — just like the last budget and TIO,” he said. “The CLP has no mandate to sell or lease the Port.”

Under the terms of the agreement the Territory will lease the Darwin Port land and facilities of East Arm Wharf (including the Darwin Maries Supply Base) and Fort Hill Wharf.

The Territory will retain Stokes Hill Wharf, Fisherman’s and Hornibrook’s wharves and Frances Bay facilities.

It will also retain a range of oversight and regulatory functions including the Regional Harbourmaster role and responsibility for price and access regulation.