Australian government negotiates deal for Darwin Port as Landbridge defends lease

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8 hours ago

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.