THE CHINESE Ambassador to Australia, Xiao Qian, has defended the rights of China’s Landbridge Group to continue operating the Port of Darwin.
But at the same time New York-based firm Cerberus Capital Management is reported to be readying an offer to buy the port from Chinese group Landbridge.
Both Liberal and Labor politicians during the recent federal election campaign called for Landbridge’s 99-year lease to be cancelled, claiming the company was in financial trouble – something Landbridge denies.
A report in the Australian newspaper suggests Cerberus will offer just over the $506 million Landbridge paid 10 years ago for a 99-year lease of the port, a long way short of the $1 billion Landbridge’s owner Ye Cheng would reportedly be prepared to consider.
In an ABC interview on 22 May, Mr Xiao said the Chinese side had consistently maintained communication with both the Australian federal government and the Northern Territory government through diplomatic channels.
He emphasised that a decade ago, the Landbridge Group secured the lease for the Port of Darwin through an open and transparent bidding process, fully compliant with Australian laws and market principles.
“Second, over the past 10 years, Landbridge Group has made significant investments in maintaining and building Darwin Port’s infrastructure, optimising its operations and management, and expanding its customer sources,” Mr Xiao said.
“These efforts have brought remarkable improvements to the port, turning its financial situation from losses to profits and contributing positively to local economic and social development. Such an enterprise and project deserves encouragement, not punishment. It is ethically questionable to lease the port when it was unprofitable and then seek to reclaim it once it becomes profitable.
“Third, the lease agreement is a commercial contract. We hope the Australian side will view the Darwin Port project objectively, honour its binding commitments under the contract and respect the autonomous decisions made by businesses based on development needs.
“Fourth, China and Australia are comprehensive strategic partners. The two sides should foster mutual trust, as mutually beneficial cooperation aligns with our shared interests. We hope the Australian federal government and the Northern Territory government will create a fair, transparent, and predictable business environment for Chinese enterprises operating in Australia.”