Northern Territory Passes Act To Lease Darwin Port
Thursday 28 May 2015 @ 12.08 p.m. | Legal Research
The Northern Territory Government has passed a suite of port management acts that pave the way for the privatisation of Darwin Port, as well as making a number of changes to the overall port regulatory framework. The Port Management Act 2015, Ports Management (Repeals and Related and Consequential Amendments) Act 2015 and the Port of Darwin Act 2015 were notified this week, although their dates of commencement are yet to be proclaimed.
Attention has been doubly focussed on the management and oversight of the NT’s ports since a recent ABC News article revealed that a $130 million deep sea port development on Port Melville in the Tiwi Islands was built despite never being subject to a formal environmental impact statement. This news was followed by revelations of a diesel spill at the port that contaminated approximately 150 cubic metres of soil.
Port Management Act 2015
The Act allows the port to be leased to a private operator on a long term (less than 99 year) basis. The Explanatory Statement for the Bill says:
“The regulatory regime created under this Bill allows private port operators of designated ports to have day to day control of port operations, while ensuring that the Northern Territory retains a number of residual regulatory and operational functions relating to (among other things) maritime safety, vessel safety, pilotage, and port access and pricing, to ensure the ongoing good, proper and safe operation of port operations.”
The Bill was subject to a parliamentary committee inquiry chaired by Mr Nathan Barrett, member for Blain and a former stevedore. He told ABC Rural that there were thirty different companies who had indicated their interest in leasing the port, but that the Government were “not chasing the highest bidder, we’re looking for the right partner”. He said:
“What people need to understand about this lease model is that it's not about a cash grab. This is not because we need money to pay off something. Right now, the (NT Government) is in the situation where we don't have the capital to expand. We have a lot of industries here in the Northern Territory that could expand and the port is a really crucial piece of infrastructure. In order to expand the port and to do work that needs to be done in the future, it would be better if a private company is putting forward that capital.”
The committee’s report, released in April, made 18 recommendations for amendments to the Bill, including the following:
- The Ports Management Bill be amended to require the port authority to consult with all persons directly affected by port operations in the preparation of its port safety plans;
- The Ports Management Bill be amended to include offences for failing to comply with a port safety plan and that the maximum penalties for these offences be no less than those for failure to comply with a work safety duty under the Work Health and Safety (National Uniform Legislation) Act;
- The Ports Management Bill be amended so that port safety plans also cover risks reasonably likely to cause serious damage to the environment;
- The Government remain vigilant against monopoly pricing and ensure the adequate enforcement of the access and pricing provisions of the Ports Management Bill, including ongoing consultation with port users regarding the adequacy of the regulations made under the Bill;
- In the case of foreign investment in a lease over the Port of Darwin:
- a component of the lease be kept in the control of an Australian entity; and
- the Government consult with the Foreign Investment Review Board and the Department of Defence regarding security or strategic risks that a proposed partner may present.
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