The federal government has asked national security agencies for assessments of the Darwin Port as part an ongoing review into the leasing of the facility to Chinese-owned company Landbridge, an internal briefing obtained by the ABC shows.
The briefing – released under Freedom of Information (FOI) laws – was prepared by the Department of Prime Minister and Cabinet (PM&C) in October last year ahead of budget estimates hearings in parliament.
The five-page document outlines the steps taken by the department after Prime Minister Anthony Albanese revealed in June that he had ordered a fresh review into the "circumstances" of the 99-year lease, which was signed in 2015.
"The department has commenced consultations with Commonwealth agencies and has requested information, reports [and] assessments relating to the Port of Darwin developed in 2022," the briefing states.
It says the requests were sent in October to a range of agencies, including:
- Department of Foreign Affairs and Trade
- Department of Home Affairs
- Department of Defence
- Office of National Intelligence
- Australian Security Intelligence Organisation
- Attorney-General's Department
The briefing also includes recommended responses "if pressed" at budget estimates on what the review's terms of reference are.
"We are currently reviewing all information that is available in relation to the lease of the Port of Darwin to inform our review," it suggests saying.
"This will enable the department to advise the government about what the terms of a review could be and timelines to complete the review."
Landbridge requests input into review
The briefing says Landbridge wrote to the Department of Prime Minister and Cabinet in October last year "seeking advice on the nature and scope" of the review.
It says the company also asked whether it would be provided an opportunity to respond to the review, but the briefing does not disclose the outcome of the request.
In August last year, Landbridge told the ABC it was not consulted as part of a previous national security assessment conducted by Defence at the request of the former Coalition government.
The Defence assessment has never been publicly released, but media reports in December 2021 said it did not find sufficient grounds to overturn the lease.
The briefing notes Landbridge's lease covers only a "small portion of the harbour precinct", including the East Arm Wharf, which is mainly used for commercial vessels, and the Fort Hill Wharf, which is primarily used by cruise ships.
It also says there are several "publicly known protections for Australia's interests in the Port of Darwin".
These include the Defence Act, which gives Defence the power to access the port, as well as provisions within Landbridge's lease that can be enforced by the NT government, it says.
Company 'ready to answer any queries'
Landbridge, which is owned by Shandong-based billionaire Ye Cheng, secured the long-term lease in 2015 as part of a $506 million deal with the NT government (NTG), which still retains ownership of the port and a 20 per cent stake in the lease.
But despite receiving approval from national security agencies at the time, the lease became the subject of controversy as the relationship between the Australian and Chinese governments deteriorated in the years following the signing of the deal.
"People would be aware that it was leased out to a company connected very directly with the government of the People's Republic of China," Mr Albanese said in August last year, adding that he had opposed the lease from the outset.
However, diplomatic tensions between the two countries have improved in recent months, with Mr Albanese meeting with Chinese President Xi Jinping on the sidelines of the G20 summit in Bali in November.
Landbridge has previously rejected claims that the Chinese government has any influence over its operations at the Darwin Port, which are managed by Australian employees, and said there were many "myths and mis-truths" about the lease.
In a statement, the company told the ABC it was "ready to answer any queries" from the government as part of the latest review.
"Landbridge would expect the federal government to undertake a comprehensive review using all its agencies to address any concerns it may have," it said.
"The agreement with the NTG has been reviewed a number of times previously and Landbridge's position remains that the lease is a commercial arrangement with the NTG and believes that there are no grounds on which the lease could be disputed."
It added the company was working in partnership with the NT government "to deliver the services and infrastructure required to drive economic growth in northern Australia."
The ABC asked the department if the review's terms of reference had been finalised, but it said it could not provide further details while the process was underway.
"The government has asked PM&C to review the circumstances surrounding the Port of Darwin, including consideration of the findings and outcomes of previous reviews into the Port of Darwin lease to the Landbridge Group, and advise if their outcomes remain contemporary or if any action is required," a spokesperson said.
