Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Galveston port poised to outsource its operations (Li Ka-shing's first U.S. toehold)
Houston Chronicle ^ | March 4, 2011 | Harvey Rice

Posted on 03/05/2011 2:48:20 AM PST by Cincinatus' Wife

GALVESTON — The Port of Galveston is in final negotiations to lease its facilities to a major investment group, which could make it the first U.S. port to turn over its entire operation to the private sector.

Several U.S. ports lease terminal operations to private operators, but "in this case it is the entire port structure, which is really a unique opportunity," said economist John Martin, who heads Martin Associates, based in Lancaster, Pa.

Martin Associates had done work for every U.S. port and did the economic study for the proposed lease, a 50/50 joint venture of global investment firm Carlyle Group and Hong Kong-based Hutchison Port Holdings, the world's largest stevedore-terminal operator with operations in more than 50 ports in 25 countries.

Both companies declined comment.

If consummated, the 75-year lease would give Hutchison its first U.S. toehold.

"This would be the first foray of the largest terminal operating company in the world to the United States," said port consultant Erik Stromberg, former chief executive officer of the American Association of Port Authorities.

..."It will be, as far as I know, the first one, but it won't be the last," Brinson said. "You are going to see ports that look like Galveston looking more and more to the private sector."

[snip]

The 75-year lease is unprecedented, Stromberg said. Most port leases are for 30 years and occasionally 50 years, he said...

.....Over the next 50 years even large ports like Houston's could follow Galveston's lead, he said......

(Excerpt) Read more at chron.com ...


TOPICS:
KEYWORDS: china; ports; shipping; transportation
Navigation: use the links below to view more comments.
first previous 1-2021-27 last
To: snowsislander
I have no problem with the privatization of a port; indeed, I welcome it.

OK you established your libertarian credentials

However, I certainly don't welcome Red China running a private port in the United States.

It isn't Red China. It is two private companies. Hutchison Wampoa and Carlyle group. What fine libertarian could possibly object to this new ownership?

21 posted on 03/05/2011 8:10:28 AM PST by dennisw ( The early bird catches the worm)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Cincinatus' Wife
"... port to turn over its entire operation to the private sector..."

What a lie!

“The capitalists will sell us the rope with which we will hang them.”~Lenin

22 posted on 03/05/2011 8:17:12 AM PST by 444Flyer ("...Rather the scorned- the rejected -the men hemmed in with the spears..." from 'A Consecration')
[ Post Reply | Private Reply | To 1 | View Replies]

To: dennisw
It isn't Red China. It is two private companies. Hutchison Wampoa...

Hutchinson-Whampoa has been controlled by Red China since the late 1970s. From Time magazine, The Other Handover:

But by 1979 he [Li Ka-shing] was straining to break out of the confines of being a mere property developer. He quietly invested some money he made from the stock market in Hutch before acquiring the Bank's stake. The Bank was looking for more than just commercial acumen; it wanted connections to the political masters in Beijing who were dismantling the horrors of the Cultural Revolution and pursuing an open-door economic policy that would eventually give foreign companies access to China's vast market. Michael Sandberg, the Bank's then chairman, decided that the best way was to form a close association with someone like Li who could help the Bank get back into China.

The Bank's faith in Li's guanxi, or connections, was vindicated with extraordinary speed. A month after selling its stake in Hutch, Li was named one of three Hong Kong directors to China International Trust and Investment Corp., the company that was designated to spearhead China's open-door policy by aggressively creating a capitalist business model for others to follow.

No obscure Hong Kong flower salesman just happens to be put on the board of the Chinese Communist Party's flagship NEP enterprise, CITIC.

23 posted on 03/05/2011 8:35:48 AM PST by snowsislander
[ Post Reply | Private Reply | To 21 | View Replies]

To: snowsislander

Looks to me like a good capitalist company from China. You advocate private ownership of ports and they like to own and manage them. Would you feel the same if it was a private corporation from Brazil or Korea?

Do you believe in free trade between China and America?


24 posted on 03/05/2011 8:51:59 AM PST by dennisw ( The early bird catches the worm)
[ Post Reply | Private Reply | To 23 | View Replies]

To: snowsislander
and......DBS Bank, the large Southeast Asian lender based in Singapore; Deutsche Bank; and Goldman Sachs are the joint bookrunners for the issue.
25 posted on 03/05/2011 1:45:22 PM PST by Cincinatus' Wife (Allhttp://www.freerepublic.com/focus/f-news/2122429/posts)
[ Post Reply | Private Reply | To 23 | View Replies]

To: Cincinatus' Wife

The sellout of America to Red China continues. I knew that if I wanted to find people who are cheering this latest betrayal it would be on Free Republic.


26 posted on 03/05/2011 4:19:21 PM PST by Roninf5-1 (If ignorance is bliss why are so many Americans on anti-depressants?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Roninf5-1

It is depressing to note. But it seems so.


27 posted on 03/06/2011 1:40:31 AM PST by Cincinatus' Wife (Allhttp://www.freerepublic.com/focus/f-news/2122429/posts)
[ Post Reply | Private Reply | To 26 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-27 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson