The federal government has confirmed they will build a new Darwin port, but deny it is because of the 99-year lease a Chinese-backed company has on Darwin's existing port.
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Infrastructure Minister Barnaby Joyce on Wednesday flagged $1.5b for "new port infrastructure" in Darwin.
However, it was confirmed in estimates on Thursday that a new port would be built in the Middle Arm precinct north of Darwin.
The existing Darwin port has been the subject of controversy because of its 99-year leasing arrangement with China's Landbridge Group.
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Defence conducted a review of the security implications of the leasing arrangement but found no national security grounds to recommend the federal government overturn the deal.
Following questioning from Northern Territory Senator Malarndirri McCarthy, Infrastructure, Transport, Regional Development and Communications department secretary Simon Atkinson confirmed the money was going towards a new port.
However, Mr Atkinson said the new port was not being built because of the lease deal on the existing one.
"It's about additional export capacity for energy exports and critical mineral exports and advanced manufacturing exports," he said.
Senator McCarthy asked if defence or security had "any role in this decision" to build a new port.
"We will be working with defence to ensure that the ports have multi-user capacity....if we can, taking into account the design of ports, also support defence activity," Mr Atkinson said.
Defence Minister Peter Dutton told reporters in Canberra on Thursday that a new port could support defence contracts, but said: "We will have more to say about that in due course."
Chief Minister Michae Gunner said he welcomed the federal government's investment in the "new port infrastructure" and "developing the Middle Arm Precinct with the roads and rail that it needs."
"A fully occupied Middle Arm manufacturing precinct could support 20,000 Territory jobs by 2040. Not short-term jobs. Not low-skill jobs. Not FIFO jobs," he said in a statement .
"High-skill, high-wage, long-term, sustainable jobs for Territorians. That's what we are working towards.
With AAP.
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