Chinese Firm Sues to Try Stop Australia Cancelling 99-year Darwin Port Lease

The Chinese company that has a 99-year lease over Australia’s Port of Darwin has filed an international lawsuit to try ward off any attempt to break the lease.

Both major Australian parties have expressed a desire to cancel the deal—which runs until the year 2114—citing national security concerns over the company Landbridge’s links to the Chinese Communist Party.

“We’ve made it very clear that we want the Port of Darwin, that was sold to non-Australian interests with a financial incentive from the former Coalition government to the Northern Territory government, that wasn’t something that we supported at the time,” Albanese told media in January.

“And we are committed to making sure that that Port goes back into Australian hands because that is in our national interest.”

In 2015, the Northern Territory’s then-Country Liberal Party government leased the Port of Darwin for $506 million (US$354 million)—a deal that drew concern from then-U.S. President Barack Obama.

The Port of Darwin sits at the northern edge of Australia, close to major Indo-Pacific shipping routes, which gives it added importance for defence and logistics operations alongside its commercial role.

On April 23, the owner of Landbridge, Ye Cheng, lodged a dispute with the International Centre for Settlement of Investment Duties (ICSID) in an attempt to prevent the Australian government from acquiring the asset.

In a media statement, the company said Australia’s plan to take back the port was “discriminatory” and “inconsistent” with Australia’s obligations under the China-Australia Free Trade Agreement (ChAFTA).

“Landbridge acquired its interest in the port through a fair, open and competitive process in full compliance with all applicable Australian laws and regulatory approvals,” the statement said.

“Multiple Australian government reviews have confirmed there are no national security concerns.”

Landbridge Group claimed it had attempted a “constructive resolution” through dialogue with the Australian government and would now take action in an attempt to hold on to the port.

In a statement reported by the Australian Broadcasting Corporation (ABC), Transport and Infrastructure Minister Catherine King said the government was disappointed and would defend the claim.

“The government has been in good faith discussions with Landbridge to reach a mutually acceptable deal to return the Port of Darwin to Australian ownership for several months,” she said.

“We intend to continue these discussions.”

The ICSID is a global institution devoted to international dispute settlements, with China and Australia both being member states.

The case is currently listed by the ICSID as pending.