THE PORT of Darwin’s operator has raised concern about its financial health, prompting speculation that control of the port might change hands.

Landbridge Infrastructure Australia said the port had made a AUD$34m ($22m) loss in the 2024 financial year, driven largely by debt restructuring by its Chinese parent company, Shandong Landbridge Group.

Non-executive director of Landbridge in China, Terry O’Connor, said the Chinese parent was in the process of refinancing an overdue corporate bond amounting to ¥500m ($69m).

“Landbridge in China has a portfolio of large infrastructure assets, and it is looking to moderate its debt, which will likely see the sale of some assets across the group,” O’Connor said.

“Darwin Port remains in a strong financial position due to the significant headroom between its operating cashflows and debt service requirements along with its long-dated external debt position.”

But a recent director’s report, filed to the Australian Securities and Investment Commission earlier in the month and seen by Sky News Australia, is less reassuring.

The report admits that should Landbridge’s Chinese parent fail to restructure its debt, the Australian subsidiary might become insolvent and a “change of control event” could occur.

The Northern Territory Government said it had been made aware of the concerns surrounding Landbridge’s financial health and had written to the operator to seek further information, which would guide the next steps taken.

The Port of Darwin handled 1.6m tonnes of total trade in the 2023 financial year. While that does not put it among the biggest in Australia, Darwin serves as a key gateway to Asia and the isolated Northern Territory’s only major deepwater port.

Download the Lloyd’s List App — the essential tool for staying ahead in the maritime industry, anytime, anywhere! Available now on the App Store and Google Play. More information here