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Business
Matt Garrick

Northern Territory businesses hope proposed port facilities at Darwin Harbour's Middle Arm could mean new jobs

Any investment into port facilities is subject to feasibility and business case studies.  (ABC News: Michael Donnelly)

A sleepy fishing area in Darwin Harbour could one day become the home of a new port in the Northern Territory, eliciting local excitement for potential economic opportunities ahead.

Defence Minister Peter Dutton confirmed on Thursday the federal government would have "more to say" about a proposed strategic port to be built in the Northern Territory.

This week's budget flagged $1.5 billion toward a future spend of the dredging of a shipping channel and the creation of a wharf and offloading facility in Northern Australia.

Any investment into port facilities is still subject to feasibility and business case studies, and has not been allocated over the forward estimates period.

Darwin’s current port was leased to Chinese firm Landbridge for 99 years by the Northern Territory government in 2015, and has since then been the centre of a heated national security debate.  

Northern Territory Deputy Chief Minister Nicole Manison said the Territory government had pitched the idea of a multi-use facility, in the location of Middle Arm, to the Commonwealth.

"We have a plan, together, on how to develop Middle Arm", she said.

"We've pitched that … to the federal government to have a look at what is required, such as common user facilities, common user wharfs, and that's part of the investment."

North Track Machinery owner Darren Diwell says new investment in port infrastructure will be a win for Darwin. (ABC News: Che Chorley)

It is unclear whether the Commonwealth has geopolitical motivations for pledging the funding for the new port infrastructure at Middle Arm.

Finance Minister Simon Birmingham has said the main purpose of the facility was for economic development but it could also eventually be used by Defence. 

Darwin business owner Darren Diwell, who runs North Track Machinery, said the potential development of a second port in Darwin would bring a renewed economic focus to Northern Australia, and could spur a manufacturing renaissance.

"[For] all of Darwin, the Northern Territory, it's going to be a big place, and we can see it coming."

It's not clear where exactly at Middle Arm the port could be built. (ABC News: Michael Donnelly)

Stephen Goodall from the Northern Territory's Chamber of Commerce said that, if the recent announcement ever comes to fruition, the promised initial port works and potential developments that could come alongside it would be a windfall for the region.

"This is a very exciting piece of news, because it's big, meaty projects," he said.

"The forecast, really, should all of this come together as is planned, [will mean that] towards the next decade, there's a potential to see some 20,000 new jobs created in that whole area."

Landbridge's managing director, Matt Wallach, said the company was "excited" by the developments.

"Darwin Port supports the growth of trade from the Territory and is excited to see the development of inland supply chains to support this," Mr Wallach said.

"We welcome the investment for Middle Arm, which is planned to create a globally competitive, sustainable precinct which will complement our current commercial port."

Security issues 'should be above politics'

NT Senator Malarndirri McCarthy says Labor should've been given a heads up about any new port projects in the NT. (ABC News: Matt Roberts)

On Thursday night, Northern Territory Senator Malarndirri McCarthy questioned why Labor had not been briefed on a proposed new strategic port, if it was going to be used in the future as a strategic defence asset.

"It was revealed in Estimates [on Thursday] that the Departments of Defence and Infrastructure have had discussions about a proposed new port in Darwin, [which raises] a number of questions," she said. 

"On the eve of an election, major security-related decisions should be above politics, and any Defence-related matters should be briefed to Labor."

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