Chinese Control of Darwin Port Becomes Key Issue in Australian Elections

The latest Chinese port operation to come under pressure is Australia’s Port of Darwin which is now a headline issue in the upcoming federal elections. Today, April 4, Australia’s Prime Minister Anthony Albanese declared during a radio interview that Darwin “should be in Australian hands.” Concerns have been brewing over the now decade-old deal that ceded control of the port to a Chinese company.

Located on Australia’s north central coast the port while small in scope is seen as a strategic asset. It is Australia’s closest port to Asia and is playing an increasingly significant role in Australia’s expanding offshore oil and gas sector. In the port’s last fiscal year ended in 2024, it reported imports of more than 1 million kiloliters of petroleum products, handling over 280,000 head of cattle and being a major RoRo import operator for cars. It is a base to U.S. Marines and also a popular cruise ship destination.

Faced with financial difficulties, the government of Australia’s Northern Territories put out a public tender in 2014 and the following year concluded a deal with a Chinese company Landbridge. The operator gained a 99-year lease for the port and promised to make investments. Reports indicate that the U.S. with then-President Barack Obama voiced concerns over the Chinese deal.

Accusations have been raised about the operations with the Australian opposition party contending that Landbridge has failed to make the promised investments. In 2024 there were questions when Landbridge’s parent company went into default on an A$107 million (US$65 million) bond.

The company said in November 2024 that the “underlying operations of Darwin Port have improved significantly,” while reporting a nearly 50 percent increase in EBITDA earnings for FY 24. It blamed non-cash charges for an A$34 million (US$21 million) loss before taxes and said “Darwin Port remains a key asset of the group.”

Prime Minister Albanese announced the federal government is in talks with private pension fund investors on a possible deal to take over the operational lease for the port. He said the options were private investment or the federal government taking over the port. When asked in 2023, Albanese had ruled out a similar move to regain control of the port.

Opposition leaders have already spoken publicly about the need for the federal government to take control back from the Chinese. Media reports indicate they were going to make a formal public statement this coming Sunday, April 6, ahead of the May 3 federal elections.

Media reports said in March the federal government had discussions with the new government of the Northern Territory over possible steps. This came after Federal Labor MP Luke Gosling also made a public statement saying the federal government wanted to “return the port to Australian hands.”

Responding to the statements and media speculation, Terry O’Connor, Non-Executive Director for Landbridge in Australia, issued a statement in March calling the minister’s statement “a surprise,” and he asserted “Landbridge and Darwin Port have not been involved in any discussions on the matter.” He said they would engage with the Northern Territory government but the “port is not for sale.”

A local news outlet, NT News, however early in March reported Landbridge “could be willing to sell the port’s lease, but was asking A$1.3 billion (US$795 million). Reports indicate that is nearly A$800 million (approximately US$490 million) more than it paid in 2015 for the 99-year lease.

Iran Reports Stopping Two Foreign Tankers for Oil Smuggling

Iranian news agencies tied to the government and Revolutionary Guard are reporting that two foreign-owned tankers were apprehended earlier today, March 31, for diesel fuel oil smuggling. The crews are being detained and the vessels directed toward Iran.

Iran in the past has made accusations of vessels smuggling fuel, although today’s report asserts it is on a much larger scale. The Tasnim News Agency citing officials from the Revolutionary Guard is saying a “naval operation” was conducted in the central Persian Gulf. It is identifying the two vessels with the names Star 1 and Vintage, with some Western media reports saying one of the vessels appears to be owned by interests in the United Arab Emirates (UAE).

They are contending the vessels are part of fuel smuggling networks and organized efforts to steal oil from Iran. They are reporting detaining 25 crewmembers after having seized 3 million liters of diesel fuel. The vessels are reportedly being taken to the Bushehr oil dock where the fuel will be unloaded under judicial order. The report says the tankers were identified through “intelligence monitoring” at the Bushehr port.

The action comes as tensions remain high in the region. Iranian officials said they are rejecting a letter from Donald Trump that demanded talks to resolve Iran’s nuclear program and threatened dire consequences. Trump reportedly said he could send long-range bombers to attack Iran.

Iran’s Islamic Revolutionary Guard Corps (IRGC) Navy Commander, Rear Admiral Alireza Tangsiri, threatened retaliation if Iran was attacked. He told reporters on Saturday if ordered he was prepared to close the Strait of Hormuz.

Reports indicated on Saturday, March 29, the second of two cargo ships carrying the base component for rocket fuel reached Iran after a trip from China. After processing, it could supply solid fuel for approximately 250 of Iran’s medium or short-range rockets.

MSC Containership Seeks Refuge in Vigo After Container Collapse

Authorities in the Port of Vigo, Spain reported they moved quickly to reduce the navigation hazard and direct the MSC Houston V (58,300 dwt) containership into port after it reported a stack collapse. The objective was to get the vessel to dock to prevent further damage and the loss of more containers overboard.

The containership was off the southwest corner of Portugal near Cape St. Vincent when it encountered a strong late winter storm. The vessel is reported to have experienced winds approaching 50 knots. The last stack at the stern of the vessel collapsed to starboard ripping open several boxes. With boxes ripped open and hanging over the side of the vessel, her arrival attracted attention in the port on Friday, March 21.

A later survey in Vigo indicated that between 15 and 20 boxes went overboard. Port officials are saying that they have been advised there was no dangerous cargo in the containers involved in the collapse. Portuguese authorities however have issued a navigational warning for possible debris in the water.

The ship which was sailing from Piraeus to Liverpool, England was unable to divert to Leixoes, Portugal due to its size. It is 876 feet (267 meters) in length with a maximum draft of 41 feet (12.5 meters) with a carry capacity of 4,432 TEU. Built in 2010, the vessel has been operating for MSC since 2022 and is registered in Portugal.

Port officials said the cargo stabilization effort will be complicated. They moved the port’s cranes away from the berth and brought in a mobile crane for the work. Local media is reporting the repositioning efforts began on Sunday, March 23, and MSC’s online schedule shows the remaining in Vigo to March 27.

UK Says Burning Containership is Secured as Response to Collision Continues

Response efforts continued to Monday’s incident off the east coast of England in which a Portuguese-flagged containership hit a U.S.-flagged tanker that was anchored near Hull, England. The updates from HM Coastguard provided late on Tuesday, March 11, indicate that the containership Solong was still burning but that fears that the vessel would sink were diminished. The fires were greatly reduced with some flames still visible on the main deck and firefighting is focusing on those areas. A tow line has also been attached as a salvage team works to control the vessel.

Earlier in the day, the Coastguard reported the vessel was drifting. Its last position was to the south of where it hit the Stena Immaculate. The containership had also drifted further east into the North Sea away from shore. The tug with the line is reported to be holding the containership in "a safer position."

Briefing Parliament earlier on Tuesday, the UK’s Minister for Aviation, Maritime and Security, Mike Kane, said “The assessment of HM Coastguard is, however, that it is unlikely the vessel will remain afloat.” He had reported, “Modelling suggests that, should the Solong remain afloat, it will remain clear of land for the next few hours.... Tug boats are in the vicinity to ensure the Solong remains away from the coast and to respond as the situation develops."

At 2320 last night local time the Coastguard reports the Solong separated from the Stena Immaculate and began to drift southwards. The Stena vessel was anchored approximately 10 miles off the coast near Hull, England, and remains there while the Coast Guard continues to track the Solong. Daylight images today show multiple fireboats near the containership spraying the fire.

In a statement, a spokesperson for the owners of the vessel Ernst Russ is now denying the reports of dangerous chemicals in some of the containers. “We are able to confirm that there are no containers on board ladened with sodium cyanide...,” they stated. “There are four empty containers that have previously contained the hazardous chemical and these containers will continue to be monitored.”

Images of the Stena Immaculate show the large fire is extinguished. Experts said they are remaining cautious however that there might still be fire below deck and they would be monitoring the vessel. Boskalis confirmed Dutch media reports that it has been retained to oversee the salvage operation for the tanker. The company said the timeline was unclear but that resources were already traveling to the ship.

Stranded MSC Baltic III Cannot be Safely Refloated Reports Coast Guard

Twelve days after the containership MSC Baltic III (33,767 dwt) lost power and was driven ashore in Canada during a winter storm, the Canadian Coast Guard reports the vessel cannot be safely refloated. Weather continues to hamper the efforts of the Coast Guard and a private salvage team with the latest update reporting they are focusing on the fuel and other possible contaminants aboard.

The vessel was abandoned on February 15 after it was driven onto the rocky shoreline of western Newfoundland. A helicopter rescued the crew.

Since the 679-foot (203-meter) vessel went ashore, winter storms have continued to impact the area. The Coast Guard says teams are frequently unable to get aboard the ship and the weather is hampering some of the water operations. They are monitoring the ship from shore and the air.

At the beginning of the week, they reported that divers have confirmed that there were significant breaches or holes in the hull below the waterline. The vessel has settled firmly to the seabed and so far, they have not found significant breaks about the waterline. However, pictures have shown some deformations in the hull and the possibility of a crack.

“Given the vessel’s current condition, it cannot be safely refloated,” the Coast Guard writes in its updated issued late on February 27. “The initial focus will be on the removal of the fuel and cargo.”

Based on the urgency of the situation, the Coast Guard says it is looking at alternatives including repairing an old road and all-terrain vehicle trail that could be used to reach the remote location. They told The Telegram newspaper that the road would need upgrades to handle heavy equipment and tractor trailers. The Coast Guard is also looking at building an access point from shore to the bow of the vessel the newspaper reports.

The surveys have confirmed that there are approximately 1.7 million liters of heavy fuel oil and marine gas on board. While no pollution has been observed, there are concerns over a potential breach. One of the steps being explored is pumping the fuel to shore because it may not be possible to get a salvage vessel alongside.

MSC initially advised the Coast Guard that the vessel had approximately 470 containers aboard, over half of which were empty. The others are carrying items such as food, lumber, and paper supplies. In the latest updates, the Coast Guard said however eight containers with polymer beads (nurdles) have been marked as a priority for removal.

The Coast Guard says that there are materials aboard considered dangerous goods in shipping terms, such as the nurdles as well as flour and whiskey. Nothing aboard however is hazardous under normal conditions.

The biggest issue is the race against time to reduce the risks as the winter storms are likely to persist in the region and further batter the vessel.

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