A GOVERNMENT buyout of the Port of Darwin from Chinese owners Landbridge is likely to come at a high price.
In the face of warnings from the Chinese Ambassador to Australia, Xiao Qian, of possible repercussions if Australia moved to take back Landbridge’s 99-year lease of the Port of Darwin, Prime Minister Anthony Albanese on Wednesday doubled down on his election promise to return the port to Australian control.
Landbridge has reinforced its desire to hold onto the port for which it paid $506 million for the 99-year lease in 2015.
The port won the Port or Terminal of the Year at the annual Daily Cargo News 2025 Australian Shipping & Maritime Industry Awards last year and in FY25 reported an increased EBITDA of $42 million.
In its 2025 financial report non-executive director Terry O’Connor said Darwin Port is in a strong financial position, generating a net cash inflow of $32.8 million after debt obligations.
“This result is mostly due to an increase in activity through Darwin Port, with record Cruise vessel movements and activity from the Barossa project as that moves into production in 2025 being well supported by the Port,” he said.
“Darwin Port continues to focus on its growth prospects, recently releasing a Master Plan, which sets out our long-term vision for the progressive development of the port over the next 30 years.
“It provides an aspirational and strategic framework to guide infrastructure investment and operation planning, supporting Darwin Port so it can evolve and grow to meet future trade and capacity needs of the region,” Mr O’Connor said.
Some market observers have speculated that any purchase price could be substantial, potentially in the billions of dollars, given the port’s recent turnaround from a loss maker to a profitable asset.
However, no formal valuation of the port has been made public.
In a media briefing, Mr Xiao said if Australia forces a sale Beijing would feel obligated to take measures to protect the Chinese company’s legitimate interests.
He said China was a dependable partner and the Darwin port dispute was part of a wider strategic context that included trade, defence and diplomatic tensions.
Mr Xiao framed the dispute as more than a business disagreement, saying the Chinese government sees it as an issue of protecting Chinese companies overseas.
He stressed that Landbridge had invested heavily and made the port profitable, which made it bad business practice to try and take it back when it was making money.
When asked about Chinese naval live‑fire drills near Australia last year, he insisted they were “normal exercises” and not directed at Australia. Politicians have expressed concern the port is opposite Darwin’s Larrakeyah Defence Precinct.
Reporting in The Age and WAtoday said national security experts have called for the government to push ahead with plans to force a divestiture. The same coverage in The Age and WAtoday quoted Defence Minister Richard Marles saying commercial negotiations were under way, but he could not disclose the nature of those discussions.