Port facility operators have a major security responsibility, and one that could be exploited by terrorists if they infiltrate the company, said Joe Muldoon III. Muldoon is an attorney representing Eller & Co., a port facility operator in Florida partnered with M&O in Miami. Eller opposes the Dubai takeover for security reasons. "The Coast Guard oversees security, and they have the authority to inspect containers if they want and they can look at manifests, but they are really dependent on facility operators to carry out security issues," Muldoon said.
The Marine Transportation Security Act of 2002 requires vessels and port facilities to conduct vulnerability assessments and develop security plans including passenger, vehicle and baggage screening procedures; security patrols; establishing restricted areas; personnel identification procedures; access control measures; and/or installation of surveillance equipment.
Under the same law, port facility operators may have access to Coast Guard security incident response plans -- that is, they would know how the Coast Guard plans to counter and respond to terrorist attacks.
"The concern is that the UAE may be our friend now ... but who's to say that couldn't change, or they couldn't be infiltrated. Iran was our big buddy," said Muldoon.
The sale of the Peninsular and Oriental Steam Navigation Co. to Dubai Ports World was nearly complete in January, when a lobbyist for a small Florida shipping company launched a long-shot bid to derail the deal. The Florida company was concerned about the sale for business reasons unrelated to security.
The lobbyist, Joe Muldoon III, put together a white paper arguing that the deal could compromise U.S. security, then started working the halls of Congress. Mr. Schumer was an obvious choice for Mr. Muldoon. The Senator has been demanding more money for port security for years, and the deal would affect Mr. Schumer’s home territory. In late January, Mr. Muldoon gave a Schumer aide, Josh Vlasto, a copy of his white paper. “I have to say, I didn’t even ask them to go public on this,” Mr. Muldoon said, adding that he still hasn’t actually spoken to Mr. Schumer. There really was no need to ask.