Can Australia Actually Take Back Darwin Port from China?

When 90% of your citizens think a deal poses national security risks, you might have a problem. That's exactly where Australia finds itself with Darwin Port—leased to Chinese company Landbridge Group since 2015.

Prime Minister Anthony Albanese made a bold campaign promise in April 2025: get Darwin Port "back into Australian hands." Nearly a year later, the Chinese company still operates Australia's northernmost major harbor. So was this just election rhetoric?

A History of Broken Promises

This isn't Albanese's first rodeo with Darwin Port. In 2022, his administration launched an official investigation into the port's operations and investments. The momentum seemed real—until it wasn't.

Ahead of planned meetings with Chinese President Xi Jinping in 2023, the push quietly fizzled out. Australia-China relations warmed, diplomatic stability took priority, and the port review gathered dust. The final report's conclusion was tepid at best: "no reason to cancel the lease."

But Darwin Port isn't just any commercial facility. Sitting at Australia's northern tip, it's geographically closer to five foreign capitals than to Canberra. It serves as the "northern gateway" for commodities heading to Asian markets—and it sits right next to where 2,000 U.S. Marines train seasonally alongside Australian forces.

With Landbridge Group controlling port operations, this creates obvious vulnerabilities: potential espionage, selective access denial, and logistics interference during any conflict scenario.

China's Military Moves Changed Everything

What shifted Australia's strategic calculus? An unannounced Chinese naval exercise in February 2024 that caught everyone off guard.

A Chinese flotilla entered the Tasman Sea off Australia's southeastern coast and commenced live-fire exercises, providing only brief notice to a nearby civilian aircraft. Australian officials scrambled to contact their Chinese counterparts within hours, demanding explanations.

The incident revealed two sobering realities: China can project military power into distant regions, and more alarmingly, it can do so without Australian forces detecting it in advance.

Suddenly, security concerns about Darwin Port felt less theoretical and more immediate. If Beijing could conduct surprise military operations in Australian waters, what advantage might controlling a strategic port provide?

New Legal Tools, New Possibilities

Australia has also armed itself with stronger legal mechanisms. Foreign investment reforms in 2021 and 2024 granted the treasurer new powers to conduct risk-based assessments of "critical infrastructure" and compel transaction reversals if deemed contrary to national security.

These reforms addressed long-standing legal hurdles. Back in 2015, then-Prime Minister Scott Morrison argued the federal government lacked jurisdiction to review or alter the Northern Territory's deal. There was also an understanding that approved sales couldn't be retrospectively changed.

The new framework fixes both issues. The "national security" test now covers decisions made by state and territory governments, and crucially, it allows for "disposal of an interest that has been acquired"—enabling the government to reverse past contracts.

China isn't happy. The Chinese Embassy argues that Australia leased the port during financial strain but now seeks to reclaim it after conditions improved. "This is not a way to do business," they warn, threatening to "take measures to protect Chinese interests" if the port is reclaimed.

A Financially Distressed Operator

Here's where the story gets interesting: Landbridge Group is reportedly in serious financial trouble.

Late 2024 reports suggest the company is "scrambling to offload assets and pay down debt to stave off creditors and avoid a forced sale" of Darwin Port. As of 2021, Landbridge had been sued at least 14 times by major financial creditors.

The company has publicly warned that "an insolvency event could occur," which would trigger bankruptcy proceedings and leave Darwin Port's ownership in limbo. Financial pressures may force Landbridge to divest from Darwin voluntarily.

For the past six months, the company has engaged in discussions with the Australian government about a potential deal. Canberra signals optimism that a private buyer could step forward with a credible offer.

The Strategic Environment Is Shifting

Unlike previous attempts, several factors now align in Australia's favor. Legal authorities are clearer, Landbridge is financially weaker, and China's military behavior has sharpened Australian threat perceptions.

The balance of risks is shifting. While Beijing may retaliate economically, the strategic environment is increasingly conducive to reclamation. Australia has stronger legal tools, a financially distressed counterpart, and heightened public support.