Recently, Australia re-examined the Darwin Port lease agreement and tried to force Chinese companies to abandon the lease rights. On May 26, Shandong Landbridge Group Co., Ltd., the protagonist of the event, held a press conference on the development of Darwin Port in Australia. Respond to questions about the Darwin Port lease. According to reports, Shandong Landbridge Group will follow up on the further development of this incident to consider protecting its own legitimate rights and interests through corresponding legal procedures or other appropriate methods.

Shandong Landbridge Group Co., Ltd. is a private enterprise group focusing on port infrastructure and energy and chemical industries. It has China's largest private comprehensive port-Shandong Landbridge Port, Lingang petrochemical base-Shandong Landbridge Petrochemical, and China's largest private VLCC 308,000-ton super-large tanker fleet (6 ships). In order to enter the international market and realize the complementary development of domestic and foreign industries, Shandong Landbridge Group leased the Port of Darwin in Australia in 2015.

The Port of Darwin has a significant geographical location. It is the closest modern deep-water port to Asia and China, and is Australia's business gateway to the Asian market. In 2015, the Australian Government of the Northern Territory issued an invitation to investors from all over the world to sell the 99-year lease of Darwin Port. Landbridge Group has won the favor of the Northern Territory government by virtue of having the largest private port in China-Shandong Landbridge Port, as well as rich port management experience, sincerity in friendly cooperation, and promising benefits in the future, and signed a cooperation agreement with the Northern Territory government. A one-time payment of 506 million Australian dollars in 99-year rent, and the 99-year lease right of Darwin Port, Australia.

The throughput of Darwin Port has achieved rapid growth for six consecutive years. In the past six years, Shandong Landbridge Group has continuously invested in the construction of port facilities and optimized its management team to ensure the stable operation of Darwin Port and ensure the continuous growth of port business. In 2020, the total tonnage of ships arriving at Darwin Port will reach 30 million tons. After upgrading and transformation, Darwin Port has continuously improved its service functions and now has three main functional port areas. Currently, the types of goods transported mainly include: export goods involve energy, minerals, agricultural and animal husbandry products, etc.; imports involve automobiles, machinery, daily necessities, building materials, etc. The home port of cruise ships can call the world's largest cruise ships.

The radiation effect in the hinterland of Darwin Harbor has been further enhanced. Among the export resources of Darwin Port, 85% of ore products are sent to China. From the beginning of 2020, North Australia's mining industry has begun to recover. More and more ferrous metals and precious metals are transported to East Asia and Southeast Asia via the Darwin Port through bulk transportation. .

A large part of North Australia’s processed meat products and fish are sent to China or via Singapore to China; live cattle, etc., are fattened in Indonesia and Vietnam, and part of the processed products are exported to China; as Australia’s largest live cattle export port, Darwin The port is communicating with the Hainan Free Trade Zone, and there is a lot of room for cooperation between the live cattle trade and China in the future.

The planning and construction of Darwin Port continued to improve. According to the agreement with the Northern Territory Government, Landbridge Group will invest 20 million Australian dollars in the expansion and improvement of port berths and supporting facilities within 5 years after the acquisition of the Darwin Port, and promote the planning and construction of the hinterland industrial park; and increase the Darwin Port in the next 20 years Invest 200 million Australian dollars for the construction of bulk cargo berths, crude oil berths, LNG berths, container berths, and the development of port industrial parks and commercial supporting facilities to meet the growing export of oil, natural gas, ore, and agricultural and livestock products in the Northern Territory And business development needs.

Landbridge Group has now completed an investment of 20 million Australian dollars within 5 years as agreed, and has completed the construction of a 260-unit refrigerator container park and some port supporting facilities. The freezer container park is fully capable of meeting the development of super large aquaculture projects in the Northern Territory. The cruise ship’s home port has been expanded to 360 meters, enabling the world’s largest cruise ship to be docked.

The future development space of Darwin Port is even broader. At present, Landbridge Darwin Port has ushered in a period of significant business growth. Throughput will continue to maintain rapid growth, and the future development prospects are bright. First, the increase in agricultural and animal husbandry products in the Northern Territory and the demand in the Asian market have maintained rapid growth, which has provided a guarantee for the increase in the port of Darwin. The second is the recovery of mining in the Northern Territory in recent years. Many minerals have resumed operations. Many new magnetite and rare earth mines will also be put into production in the next few years, and their products will be exported to Asia through the Port of Darwin. Third, the Conoco Phillips LNG production base in the United States and the INPEX LNG production base in Japan are updating facilities and continue to increase investment in the development of offshore gas fields. Their output will further increase, bringing huge growth to the port of Darwin. .

Attitudes of Chinese Enterprises

Recently, relevant parties and people in Australia expressed that they are considering taking back the port of Darwin in Australia, tearing up the previously signed 99-year lease contract for the port of Darwin, and taking re-examination measures. In this regard, Landbridge Group pointed out that the acquisition of Darwin Port was carried out under the premise of following international market norms and local laws. It is a mutually beneficial and win-win business practice, normal exchanges and cooperation, and does not involve any security issues. From the beginning of Landbridge Group's acquisition of Darwin Port, it has successively undergone a review by the Northern Territory Government, a review by the Australian Ministry of Defense, and subsequent reviews of the Critical Infrastructure Security Act and the Foreign Investment Act. Landbridge Group's acquisitions are in compliance with Australian laws and regulations.

The port lease agreement signed by the Northern Territory Government of Australia and Shandong Landbridge Group for a lease term of 99 years is a legally binding agreement. According to the basic contractual spirit and the principle of mutual trust in business cooperation, the rights and obligations under the port lease agreement should be obtained Respect and performance by all parties. At present, the remarks of relevant parties and people in Australia and Australia violate the basic contractual spirit and the principle of mutual trust in business cooperation, and also seriously damage the legitimate rights and interests of Shandong Landbridge Group under the port lease agreement, which is normal for Shandong Landbridge Group’s domestic and overseas industries. The development of production and operation activities, foreign cooperation and investment and financing activities have had a serious negative impact.

In the future, Shandong Landbridge Group will consider protecting its legitimate rights and interests through corresponding legal procedures or other appropriate methods based on the further development of this incident.

Call on all parties to commit themselves to strengthening economic and trade cooperation. Shandong Landbridge Group calls on relevant parties and people in Australia to pay more attention to the great benefits that the Belt and Road Initiative has brought to China-Australia cooperation in terms of policy communication, facility connectivity, unimpeded trade, financial and people-to-people bonds, and Landbridge Group’s The efforts made by the development of Darwin Port, including the positive impact of the rapid development of Darwin Port on the Northern Territory and more regions in Australia, jointly safeguard and promote the development of Darwin Port, create a better atmosphere for international economic and trade cooperation, and make more contributions . Editor/He Yuting