ADF and US Marines could bypass Chinese-owned Darwin port

New dual-use port infrastructure in Darwin could provide the Australian and US militaries a potential alternative to the city’s controversial Chinese-leased facility.

Commander of US military forces in the Indo-Pacific, Admiral John C. Aquilino, left, with the Commander of 1st Brigade, Brigadier Nick Foxal at Darwin’s Robertson Barracks. Picture: Glenn Campbell

Defence Minister Peter Dutton says the government has allocated funds for new dual-use port ­infrastructure in Darwin, in a move that could provide the Australian and US militaries a potential alternative to the city’s controversial Chinese-leased ­facility.

Buried in the budget is a $1.5bn allocation for “new port infrastructure, such as a wharf, an offloading facility and dredging of the shipping channel” in the Northern Territory. The federal government recently opted against stripping Chinese company Landbridge of its lease over the Port of Darwin, despite widely held security concerns, amid fears of a Chinese backlash and hefty compensation bill.

But Mr Dutton fuelled speculation on Thursday that the commercial and military vessels could bypass the Chinese-owned facility under the NT infrastructure commitment.

“That does look at port development and ways in which we might be able to support, through contracts from Defence, for ­example, the underpinning of a business model,” he said.

Finance Minister Simon Birmingham told Senate estimates the proposed facilities were planned for the 1500ha Middle Arm precinct, outside the Landbridge lease. He said the development was in line with the NT government’s plan to create an energy and critical minerals shipping ­facility. But he said it “may absolutely provide further opportunity for defence operations as well”.

“It is possible that infrastructure built there will provide multiple benefits in terms of industry and defence, and that of course would be welcomed if it can achieve multiple aims,” he said.

The budget allocation comes amid a reluctance by the US to use the Chinese-owned port for operations by its Marine Rotational Force vessels. The US is also examining options to relocate its amphibious forces to safer locations from across the Indo-Pacific.

Australian Strategic Policy ­Institute defence and national ­security program director ­Michael Shoebridge welcomed the move. But he said Australia’s failure to cancel Landbridge’s lease over the main Port of Darwin was “a continuing own goal”.

“It’s leaving the sand in the oyster and growing a protective pearl around it,” he said.

“The idea ending the lease will change anything about Beijing’s aggressive policies and behaviour towards Australia is looking ­increasingly silly.”

He said China’s push to sign a security agreement with the Solomon Islands and its targeting of an Australian aircraft with a laser in the Arafura Sea earlier this year “further make the case for control and development of Darwin Harbour as a base for Australia and our partners”.

Landbridge Australia managing director Matt Wallach said the proposed Middle Arm development would complement the company's own facility by contributing to a “globally competitive, sustainable precinct”.

“We look forward to continuing to work co-operatively with the Northern Territory government and industry stakeholders to help make this exciting opportunity a reality,” he said.

A Defence review last year found there were not sufficient national security grounds to overturn Landbridge’s 99-year lease.