U.S. private equity firm Cerberus Capital Management has expressed interest in acquiring the lease to Australia’s strategically vital Darwin Port, according to a senior executive at Landbridge, the Chinese company currently operating the port.
Terry O’Connor, non-executive director for Landbridge in Australia, confirmed that a Cerberus executive recently met with Darwin Port CEO Peter Dummett to discuss a possible acquisition. However, he noted that Cerberus had not yet entered formal talks with Landbridge’s board. Cerberus declined to comment.
Landbridge, which secured a 99-year lease for the port in 2015 for A$506 million, has repeatedly stated the asset is not for sale and has not held discussions with the Australian government regarding divestment.
The development comes as Prime Minister Anthony Albanese’s administration seeks to return the port—located in a key strategic area near where U.S. Marines are stationed—back to Australian hands. A formal process to identify domestic investors is underway, according to Special Envoy for Defence and Northern Australia Luke Gosling.
"There have been numerous meetings with potential proponents for the Port of Darwin," Gosling said in a statement, adding that the process will be handled "methodically."
The port’s Chinese ownership has long been a geopolitical flashpoint. Its sale to Landbridge nearly a decade ago drew criticism from then-U.S. President Barack Obama. The region plays a critical role in U.S.-Australia military cooperation, including joint airbase expansion projects and regular Marine deployments.
On Tuesday, China’s foreign ministry reaffirmed its opposition to any forced divestment. “The Chinese enterprise concerned obtained the lease of Darwin Port through the market, and their legitimate rights and interests should be fully protected,” said spokesperson Mao Ning during a regular press briefing.
Australia's federal and Northern Territory governments continue to assess options. NT Treasurer Bill Yan recently told parliament that the port must be prepared for expanded defence logistics, critical minerals exports, and LNG growth — and that it should operate in “Australian interests.”
Analysts suggest a voluntary sale by Landbridge could defuse geopolitical tensions. “Beijing would not be happy with a divestment of an asset like this,” said John Coyne, director of national security programs at the Australian Strategic Policy Institute. “But a commercial sale offers a smoother path for the Albanese government than intervening on national security grounds, which could provoke economic retaliation.”
The Australian newspaper earlier reported that Cerberus, led by billionaire Stephen Feinberg — now U.S. Deputy Secretary of Defense — is preparing a formal bid.
(Reuters + Staff)