BAE System's Sale of Dormant Australian Naval Shipyard Raises Concerns

The likelihood of a new political debate over Chinese ownership and the sale of key elements of Australian infrastructure is growing as opponents cite the proposed sale of a former shipyard site to a real estate management company in part owned by a Hong Kong-based company. The issue of Chinese control has come to the forefront over the past few years as the political debate grew over the Port of Darwin, which was leased to a Chinese company.

News broke in mid-October with the publication Australian Defense Magazine first reporting that BAE Systems had confirmed the sale process of the Williamstown naval shipyard near the Port of Melbourne, and the last in Victoria. BAE confirmed to the magazine the sale was in process but declined further details.

A spokesperson for the real estate developer EMKC3 confirmed to the magazine that it had a sale contract. It said future uses for the site were being discussed, but as per the terms of the contract, it would not provide additional comments. EMCK3 is in part owned by a Chinese group of the same name based in Hong Kong.

The Williamstown shipyard is significant because of its location and its long history. There has been shipbuilding in the Williamstown area since the 1850s. The current site was the location of the Victorian Navy before federation in 1901, and shipbuilding commenced at the current site in 1913.

This story was originally published by The Maritime Executive. Read the full story at The Maritime Executive →