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Darwin Port’s finances are to be investigated by the Northern Territory Government amid reports of its Chinese owner’s financial struggles.
Treasurer Bill Yan says they have “been made aware” of concerns about the financial viability of the port’s operator, Landbridge Group, and notified the federal government.
“The Territory Government has written to Landbridge seeking further information about their financial status, and ability to meet their payment obligations,” he says.
“This additional information will guide the government’s next steps regarding operations at the port.”
He says the government’s immediate focus is to ensure the port remains operational as its future is confirmed.
Yan was to have met with Federal Infrastructure Minister Catherine King to discuss the issue.
Landbridge Australia non-executive director Terry O’Connor says they are “pleased” with the port’s 2024 financial year operational performance.
But he confirms the port lost $34.362m for that year as the owners move to refinance a $107 bond debt.
O’Connor also says the group is considering selling assets in China (not Darwin Port) next year.
“Landbridge in China has a portfolio of large infrastructure assets, and it is looking to moderate its debt, which will likely see the sale of some assets across the group,” he says.
“Darwin Port remains in a strong financial position due to the significant headroom between its operating cashflows and debt service requirements along with its long-dated external debt position.”
The news comes after the group announced it had signed a non-binding Memorandum of Understanding with Shenzhen Port during a global logistics and supply chain fair held in China during September.
A port delegation was joined by a team for Aurizon as they discussed the rail operator’s plans for a land bridge for Darwin at the fair.
Under the plan, cargo imported by sea into Darwin will be transferred onto Aurizon’s national rail network for shipment to southern Australia.
The port said it already identified potential customers at the fair for Aurizon’s land bridge.
