Toll Group is reportedly in discussions to acquire the lease of Darwin Port through a partnership with U.S.-based private equity firm Cerberus Capital Management.
The port is currently operated by Chinese company Landbridge Group under a 99-year lease agreement signed in 2015 for $506 million.
Sources indicate that Cerberus has engaged with Northern Territory government officials and Landbridge representatives regarding the potential acquisition. Landbridge has stated that the port is not for sale.
The Australian federal government is considering options to return the port to domestic ownership due to national security concerns. Prime Minister Anthony Albanese has expressed opposition to the original lease agreement.
Landbridge has invested over $83 million in the port since acquiring the lease, with shipping tonnage increasing by 95.7%. However, financial audits have raised concerns about the company's ability to continue as a going concern.
Toll Group is an Australian transportation and logistics company, operates a network across the Asia-Pacific region, providing freight and logistics services.
Cerberus Capital Management is a U.S.-based private equity firm specializing in distressed investing, manages assets across various sectors, including real estate and infrastructure.
Landbridge Group is a Chinese conglomerate with interests in petrochemicals, logistics, and infrastructure.