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Australia: Northern Territory ports management overhauled and future Port of Darwin privatisation
TIN news: The ports privatisation model is intended to allow the Northern Territory and any private operator to work in partnership, while ensuring the Territory remains in a position to address privatisation risk.
After the Port Melville controversy last month, the regulatory regime for ports in the Northern Territory has been brought into the spotlight.
A new package of legislation recently passed by the Northern Territory Government has overhauled the existing port regulatory framework, giving it more power to impose tighter controls and regulations for designated ports, and opened the door to the privatisation of the Port of Darwin.
Privatising the Port of Darwin
The Port of Darwin is currently managed and operated by the Darwin Port Corporation, a business division of the Northern Territory Government, in accordance with powers and functions defined under the Darwin Port Corporation Act and its by-laws.
With the passing of the Port of Darwin Act 2015, private investment opportunities in the Port of Darwin can be pursued and upon commencement of this Act, the Northern Territory Government will be able to transfer to a private entity certain assets, rights and liabilities relating to, or in connection with, the Port of Darwin. However, the transfer of the land comprising the port assets will be limited to a leasing arrangement which will be for a term not exceeding 99 years. Therefore, the Northern Territory Government will retain ownership of the land as well as maintain certain rights and powers for the safe and proper operation of the Port of Darwin as afforded under the Ports Management Act 2015.
A new regulatory framework for Northern Territory ports
Currently, port regulation in the Northern Territory depends on the type of port:
the Port of Darwin is regulated by the Darwin Port Corporation Act and the Marine Act; and
ports which are associated with mining activities are regulated by the Mine Management Act.
All other ports are not currently regulated.
The new Ports Management Act 2015 establishes a regulatory framework for the management and control of the privately operated Port of Darwin, and amalgamates the other legislative regimes. Importantly, it also creates a mechanism to regulate those ports which are not currently regulated.
After the Port Melville controversy last month, the regulatory regime for ports in the Northern Territory has been brought into the spotlight.
A new package of legislation recently passed by the Northern Territory Government has overhauled the existing port regulatory framework, giving it more power to impose tighter controls and regulations for designated ports, and opened the door to the privatisation of the Port of Darwin.
Privatising the Port of Darwin
The Port of Darwin is currently managed and operated by the Darwin Port Corporation, a business division of the Northern Territory Government, in accordance with powers and functions defined under the Darwin Port Corporation Act and its by-laws.
With the passing of the Port of Darwin Act 2015, private investment opportunities in the Port of Darwin can be pursued and upon commencement of this Act, the Northern Territory Government will be able to transfer to a private entity certain assets, rights and liabilities relating to, or in connection with, the Port of Darwin. However, the transfer of the land comprising the port assets will be limited to a leasing arrangement which will be for a term not exceeding 99 years. Therefore, the Northern Territory Government will retain ownership of the land as well as maintain certain rights and powers for the safe and proper operation of the Port of Darwin as afforded under the Ports Management Act 2015.
A new regulatory framework for Northern Territory ports
Currently, port regulation in the Northern Territory depends on the type of port:
the Port of Darwin is regulated by the Darwin Port Corporation Act and the Marine Act; and
ports which are associated with mining activities are regulated by the Mine Management Act.
All other ports are not currently regulated.
The new Ports Management Act 2015 establishes a regulatory framework for the management and control of the privately operated Port of Darwin, and amalgamates the other legislative regimes. Importantly, it also creates a mechanism to regulate those ports which are not currently regulated.