‘It is not owned by the Chinese government’: Landbridge hits back at Darwin Port
The company that holds the 99-year lease of Darwin Port says it has been the subject of unwarranted concerns and has hit back at “mistruths”, insisting the Chinese government has no influence over its operations.
Key points:
- Landbridge is owned by Chinese billionaire Ye Cheng, who paid $506 million for the lease
- The Prime Minister says the firm is “connected very directly” with the Chinese government
- Landbridge says it’s in partnership with the NT government, which has a stake in the lease
The port — which is considered the most strategic maritime asset in northern Australia — was controversially leased to Chinese-owned company, Landbridge, in 2015.
Amid ongoing tensions between Australia and China, the federal government is reviewing the $506 million deal, with Prime Minister Anthony Albanese last week reiterating some of his concerns.
“People would be aware that it was leased out to a company connected very directly with the government of the People’s Republic of China,” Mr Albanese said.
But in an interview with the ABC, Landbridge said that just because the company is owned by Chinese billionaire Ye Cheng, that does not mean it is subject to Chinese government control.
“There’s a lot of myths and mistruths being spoken around the lease of the port,” Landbridge Port Operations board member Terry O’Connor said.
“To single us out for special treatment, I think is undeserved.”
Mr O’Connor said the company’s Shandong-based owner had “no input” in the port’s daily operations, which are managed by Australian employees.
He also said Landbridge works “in partnership” with the Northern Territory government, which retains a 20 per cent stake in the lease and is involved in discussions about the port’s future development.
“It is not owned by the Chinese government,” Mr O’Connor said.
“Darwin Port is owned by the Northern Territory government.”
Landbridge questions the need for federal reviews
The Darwin Port lease was the subject of a separate national security review commissioned by the former Morrison government last year.
The Defence Department has refused a Freedom of Information request to make its assessment public, despite media reports suggesting there were no adverse findings.
“From our perspective, I see nothing that we would fear should it be released,” Mr O’Connor said, noting that Landbridge had not been consulted about the review or its findings.
Mr O’Connor said under the terms of the lease, Defence and Australia’s allies would be given “priority berthing” at the port in the event of an emergency.
The scope of the Albanese government’s current review has not been disclosed, but Darwin-based Labor MP Luke Gosling last week suggested it would examine potential “impropriety”.
Mr O’Connor noted the lease had already been the subject of multiple assessments by national security agencies and inquiry conducted by the NT and federal parliaments.
“I don’t think there’s anything to see, to be honest.”
‘The port is not for sale’, Landbridge says
The uncertainty created by the reviews is having a direct impact on the company, Mr O’Connor said.
“With this constant cloud about the longevity of the port, constant investigations, what we are seeing is a reluctance of financiers, or financiers asking questions about our ability to borrow and return, based on our ability to run the port, and grow the port,” he said.
“We see it affecting our staff, even recruiting staff, particularly at the senior level.”
Despite the ongoing controversy, and challenging economic conditions during the pandemic, Mr O’Connor said “the port is not for sale”.
“We get approached almost on a weekly basis, seeking an opportunity to invest in the port.
“Most of those investors are looking for a distressed sale, believing that they can get it at a bargain.
“The reality is the port continues to grow in line with expectations.”
Mr O’Connor said any potential moves by the federal government to reclaim the lease, or to force the Landbridge to divest, would have significant international repercussions.
“I think it would undermine the confidence of foreign investors to actually commit to investment in Australia if that were to happen,” he said.
The ABC asked the Department of Prime Minister and Cabinet for the terms of reference for the current review, as well as its time frame, but it only confirmed that a review was underway.
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