Australia’s Northern Territory government said on Wednesday it has written to Chinese company Landbridge, operator of Darwin Port, about its financial obligations and will discuss the future of the port with the federal government.
Landbridge has a 99-year lease on the commercial port in Australia’s northern city, Darwin, which also hosts a rotating force of 2,000 U.S. Marines and Australian air force and naval bases that have become key to Australia’s defence strategy.
Northern Territory Treasurer Bill Yan said the government had “written to Landbridge seeking further information about their financial status, and ability to meet their payment obligations”.
This information would guide the government’s next steps on the operation of the port, he added.
Darwin Port said its parent company was offloading assets in China to avoid selling the port.
Importance of the PortÂ
“Darwin Port remains a key asset of the group, noting its recent performance, continued strong growth prospects as a gateway to Asia, and its positive contribution and engagement with the local economy,” non-executive director Terry O’Connor said in a statement.
Yan will discuss the matter with Infrastructure Minister Catherine King, in the capital, Canberra, on Thursday.
“The Northern Territory is reviewing our rights, and our future action will be made in the best interests of Territorians,” he said.
US Military Presence Highlights Port’s Strategic Role
The awarding of the port contract to Landbridge in 2015 in a A$506 million ($390 million) deal came a few years after the United States posted the first of a rotating group of U.S. Marines in Darwin, and was criticised by the administration of then-President Barack Obama.
The size and scope of U.S. military rotations through northern Australia, and the strategic importance of northern bases, has been boosted after an Australian defence review last year said China was undertaking the largest military buildup of any country since the end of World War Two.
(With inputs from Reuters)
