Northern Territory to Retain its 20% Stake in Darwin Port

4 July 2017

Northern Territory to Retain its 20% Stake in Darwin Port

The Northern Territory Government has delivered on its promise to retain a 20 percent stake in the Darwin Port for the remaining 98 year term of the lease arrangement.

Chief Minister Michael Gunner said this arrangement will give the NT Government and Territorians greater control and ongoing input over the operations of Darwin Port - including appointments to key positions at the Port and at Landbridge.

“Territorians deserve a government they can trust and I will not stop fighting for the best interests of all Territorians,” Mr Gunner said.

“This is why I initiated a request for negotiations to begin for some of the Port to be retained in Territory hands.

“This is a positive outcome to retain the Territory’s interest in Darwin Port and I look forward in working with Landbridge to grow and develop the Port and boost and diversify the Northern Territory economy, creating jobs well into the future.

“Following negotiations over the last few months the Territory Government and Landbridge have agreed that the Territory will retain the 20 per cent for the remaining 98 year term of the lease.

“The NT Government will not be required to refund any of the $506 million lease purchase price to retain the 20% stake.”

While the full details of the transaction will remain commercial in confidence, key points include:

  • NT Government will not refund any of the $506 million lease purchase price to retain the 20% stake;
  • The agreement will allow the Territory to have ongoing input into the operation of the Port, including appointments to key positions at the Port and at Landbridge;
  • The Territory doesn’t contribute to capital investment or operating costs, nor does it receive a financial return for the 20% stake;
  • Flexibility for the Territory to divest its interest, if it chooses to do so, is maintained but only within agreed windows;
  • Commonwealth Government will have a say in any future divestment of the NT Government’s 20% stake.
  • “Landbridge and the NT Government share a desire to grow and develop the Port and our retention of the 20 percent interest further supports this,” Mr Gunner said.

“Landbridge has shown commitment to building positive and lasting relationships in the Northern Territory and commitment to the development of the region.

“This includes a pledge from Landbridge to invest $35 million in port infrastructure over five years and new investment in the Luxury Hotel and Industry and Logistics Park developments.”

The Northern Territory Government has kept the Commonwealth Government appraised of these developments and has advised them of today’s announcement.

SOURCE: http://newsroom.nt.gov.au

Publish Date: 
Tuesday, July 4, 2017 - 14:30
News Category: 

Return to News