Chinese influence over the Port of Newcastle would make it difficult to attract a new investor to replace Macquarie Asset Management, according to infrastructure experts.
Macquarie is conducting a strategic review, which may lead to the sale of its 50 per cent stake in the port that it manages for The Infrastructure Fund (TIF).
The TIF is an unlisted infrastructure investment vehicle that is due to wind down in two years.
Goldman Sachs has been appointed to review its options for a half stake, which is estimated to be worth $1.5 billion.
The day-to-day operation of the port has not been affected by the announcement and Macquarie is yet to announce a divestment date.
China Merchant Holdings' share in the port has remained contentious ever since the port was privatised by the NSW government in 2014.
Two infrastructure experts, who did not wish to be named, said while there would be no problem attracting a new buyer if 100 per cent of the port was up for grabs, there was reluctance to buy a half share.
Simmering tensions about Chinese control of Australian assets flared during last year's federal election when the Labor government announced plans to take back control of the Port of Darwin, which has been controlled by Chinese company Landbridge since 2015.
Both major parties have said they are not interested in changing the existing ownership arrangements for Newcastle.
However, concerns about growing Chinese influence at the port remain.
It was cited among the reasons why the previous Coalition government pulled out of plans to invest $250 million in an infrastructure package to support the establishment of a container terminal.
Security concerns were also raised in a study to determine the most suitable location for a future east coast submarine base.
New concerns emerged last year when it was revealed that a Chinese company had acquired a 7.23ha site at Mayfield North, a short distance from the port.
There is no obvious buyer for Macquarie's half share and China Merchant Holdings has not indicated an interest in expanding its shareholding.
But it is unlikely that any attempt by the company to increase its share would be blocked by the Foreign Investment Review Board and the federal government.
The new shareholder would also need to be aligned with the port's 40-year master plan.
The master plan focuses on diversifying trade away from coal, including the establishment of a container terminal, a $36 million multi-purpose terminal upgrade, and a clean energy precinct.
"It's essential that we find a buyer that is committed to the port's development, go ahead with the container terminal that we have all fought so hard for and get us out of the mud of what seems to be nothing going ahead," Hunter-based Nationals senator Ross Cadell told the Newcastle Herald.
The final design of the advanced clean energy production project on a 220-hectare site at Kooragang was announced last month.
It is estimated the precinct will provide 5,800 jobs and create $4.2 billion in gross regional product in the Hunter by 2040 and reduce 660,000 tonnes of domestic carbon emissions.
Front-end engineering designs and environmental impact statement studies are under way at the clean energy precinct and are expected to be complete by the end of the year.
The precinct is expected to open in 2030.
