China fights Australia’s plans to reclaim Darwin Port citing U.S. influence

by damith
June 1, 2025 1:07 am 0 comment 152 views

Darwin’s port is strategically located on the northern coast (Port of Darwin file photo)

China is speaking out vehemently opposing plans by the Australian federal government to take back the leased Port of Darwin, terming the move as «ethically questionable.»

The port has become the latest battleground over Chinese influence through port operations with Chinese officials asserting it is all part of the United States’ efforts and a plan to advance militarisation in northern Australia.

Fueling the anger are reports in the Australian media that U.S. private equity firm Cerberus Capital Management is preparing to make a bid for the port’s operations which are currently under a long-term lease to Chinese operator Landbridge Group.

Reports point to the similarities between this proposal and the announced deal for BlackRock to acquire control of the two Chinese-run terminals at the Panama Canal and MSC’s role in acquiring Hutchison’s global terminal operations.

China is speaking out against the plans to take back the port as reports in the Australian media revealed Cerberus’ interest in Darwin. Media outlet ABC (Australian Broadcasting Corporation) is reporting that earlier this month, a representative of Cerberus met with Darwin Port›s management.

‘The Australian’ revealed the talks saying the New York-based firm is willing to slightly pay above the A$506 million (US$328 million) that Landbridge paid for the 99-year lease in 2015. Cerberus it is being pointed out has close ties to the Trump administration, with co-founder Steve Feinberg stepping down as the firm’s chief executive to become the Deputy Secretary of Defence.

Darwin is one of Australia’s major ports for trade with the Asia-Pacific region. As a naturally occurring deep water port, the facility is strategically placed to be a vital link with the international marine shipping trade. With an annual throughput of 4.5 million cargo, the port is also a major supply centre for Australian oil and gas projects.

The Port of Darwin was a recurring topic during Australia’s federal elections earlier this month, with Labour and the Liberal-National coalition promising to ensure the facility reverts to Australian control. Prime Minister Anthony Albanese, who secured a second term, spoke of two options, one of which was to have an Australian-owned company take control of the port, or possibly nationalising the port to being a Government asset.

Landbridge won the lease for Darwin port in 2015 signing an agreement with the Northern Territory government despite objections including concern voiced by the U.S. Landbridge committed to make investments to improve the port, but in late 2024 reported financial difficulties sparking discussions over the port’s future.

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