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Darwin Port buyback could cost Australian taxpayers over $500m
Australian taxpayers may face a bill exceeding $500 million if the government buys back the Port of Darwin from Chinese-owned Landbridge. Prime Minister Anthony Albanese has pledged to return the strategically important port to Australian ownership, but experts warn that doing so could cost more than the original sale and lead to lengthy legal proceedings.
Landbridge secured an 80 per cent stake and full operational control under a 99-year lease agreed in 2015 for $506 million; the Northern Territory retained 20 per cent. Associate Professor Colin Hawes said any compulsory acquisition would require fair compensation, likely based on current market value, and could add millions in legal fees. Landbridge owner Ye Cheng has taken the dispute to a World Bank arbitration tribunal, which could order compensation if it rules in the company’s favour. Two government reviews found no national security grounds to terminate the lease, which has 88 years remaining.
In short
- Darwin Port’s 99-year lease could be costly to buy out.
- Landbridge may seek compensation through World Bank arbitration.
- The lease has 88 years left, with no sale timeline announced.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Buying back the port could restore Australian control over critical infrastructure and address public concern about foreign ownership of a strategically important asset. Supporters may argue that a high price and legal costs are justified if they secure long-term national control and reduce the risk of future disputes over the port’s role.
The case against
The government should avoid spending more than $500 million of public money to reverse a lease that two reviews found no grounds to terminate on national security grounds. Opponents may argue that compensation and arbitration costs could outweigh the benefits, and that the long remaining lease makes a negotiated solution or continued oversight a more prudent use of taxpayers’ money.
Explained simply
The Port of Darwin is a major northern Australian harbour used for trade and transport. In 2015, China’s Landbridge Group took an 80 per cent stake and control of its operations through a 99-year lease; the Northern Territory government kept the other 20 per cent.
The lease is a long-term agreement, with 88 years still to run. Two Australian government reviews found no national security grounds to end it, while Landbridge owner Ye Cheng has taken the dispute to a World Bank arbitration tribunal.
The port’s location gives it strategic importance as well as commercial value. Any change in ownership could involve negotiations over compensation and legal proceedings, making the cost and outcome uncertain.
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Originally published by Daily Mail as “The $500m China ‘mistake’ as taxpayers could face huge bill to bring Darwin Port back into Aussie hands”.