Toll Group is reportedly exploring a bid to take over the Port of Darwin through a partnership with an American equity firm.
Toll’s interest in the asset follows reports that Cerberus Capital Management had begun talks with the port’s senior officials as part of a formal proposal to buy the port.
According to Australian Financial Review sources Cerberus has come to an agreement with Toll and met with the Northern Territory government, political figures and Landbridge representatives.
The news comes amid rising speculation the Federal Government is looking to terminate Chinese firm Landbridge’s Darwin port operating rights on grounds of national security.
Prime Minister Anthony Albanese had pledged during his election campaign to revoke the lease of the port which Landbridge had signed in 2015 with the Northern Territory government.
The 99-year lease was controversially secured for $506 million following what the Chinese have called a “transparent bidding process.”
The Port of Darwin, where over 2000 American marines are stationed each year at Robertson Barracks, Palmerston, must accommodate substantial defence logistics, surges in critical mineral exports and growing LNG cargoes.
Cerberus Founder Steve Feinberg was appointed US Deputy Secretary of Defence in March.
Landbridge has made significant investments in maintaining and building Darwin Port’s infrastructure over the past ten years.
The port in that time had gone from operating at a loss to a profit according to Chinese Ambassador to Australia, Xiao Qian.
“Such an enterprise and project deserves encouragement, not punishment,” said Xiao.
“It is ethically questionable to lease the port when it was unprofitable and then seek to reclaim it once it becomes profitable.”
Landbridge has maintained it has no interest in selling the asset.
The move by potential suitor Cerberus was first reported in The Australian newspaper on Monday.
In 2015, Toll opened an offshore logistics base in Darwin for the multi-billion dollar INPEX-operated Ichthys LNG Project.
The supply base is meant to have an operational life of at least 40 years.
Given its proximity to Indonesia and Southeast Asia, Darwin is considered a major strategic hub for domestic and international commercial interests.
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