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UAE terminal takeover extends to 21 ports
UPI ^ | 2/24/2006 | PAMELA HESS

Posted on 02/24/2006 4:56:54 AM PST by indcons

WASHINGTON, Feb. 24 (UPI) -- A United Arab Emirates government-owned company is poised to take over port terminal operations in 21 American ports, far more than the six widely reported.

The Bush administration has approved the takeover of British-owned Peninsular & Oriental Steam Navigation Co. to DP World, a deal set to go forward March 2 unless Congress intervenes.

P&O is the parent company of P&O Ports North America, which leases terminals for the import and export and loading and unloading and security of cargo in 21 ports, 11 on the East Coast, ranging from Portland, Maine to Miami, Florida, and 10 on the Gulf Coast, from Gulfport, Miss., to Corpus Christi, Texas, according to the company's Web site.

President George W. Bush on Tuesday threatened to veto any legislation designed to stall the handover.

Sen. Hillary Clinton, D-N.Y. said after the briefing she expects swift, bi-partisan approval for a bill to require a national security review before it is allowed to go forward.

At issue is a 1992 amendment to a law that requires a 45-day review if the foreign takeover of a U.S. company "could affect national security." Many members of Congress see that review as mandatory in this case.

But Bush administration officials said Thursday that review is only triggered if a Cabinet official expresses a national security concern during an interagency review of a proposed takeover.

"We have a difference of opinion on the interpretation of your amendment," said Treasury Department Deputy Secretary Robert Kimmitt.

The Committee on Foreign Investment in the United States, comprised of officials from 12 government departments and agencies, including the National Security Council and the Department of Homeland Security, approved the deal unanimously on January 17.

"The structure of the deal led us to believe there were no national security concerns," said Homeland Security Deputy Secretary Michael P. Jackson.

The same day, the White House appointed a DP World executive, David C. Sanborn, to be the administrator for the Maritime Administration of the Department of Transportation. Sanborn had been serving as director of operations for Europe and Latin America at DP World.

Senate Armed Services Committee Chairman John Warner, R- Va., said he will request from both the U.S. attorney general and the Senate committee's legal counsel a finding on the administration's interpretation of the 1992 amendment.

Adding to the controversy is the fact Congress was not notified of the deal. Kimmitt said Congress is periodically updated on completed CFIUS decisions, but is proscribed from initiating contact with Congress about pending deals. It may respond to congressional inquiries on those cases only.

Iowa Republican Sen. Charles Grassley stated in a letter to Bush on Feb. 21 that he specifically requested to be kept abreast of foreign investments that may have national security implications. He made the request in the wake of a controversial Chinese proposal to purchase an oil company last year.

"Obviously, my request fell on deaf ears. I am disappointed that I was neither briefed nor informed of this sale prior to its approval. Instead, I read about it in the media," he wrote.

According to Kimmitt, the deal was reported on in major newspapers as early as last October. But it did not get critical attention in the press until the Associated Press broke the story Feb. 11 and the Center for Security Policy, a right-leaning organization, wrote about it Feb. 13. CSP posited the sale as the Treasury Department putting commerce interests above national security.

Kimmitt said because the 2005 Chinese proposal had caused such an uproar before it ever got to CFIUS, the lack of reaction to the Dubai deal when it was reported on last fall suggested it would not be controversial enough to require special notification of Congress.

Central to the debate is the fact that the United Arab Emirates, while a key ally of the United States in the Middle East, has had troubling ties to terrorist networks, according to the Sept. 11 Commission report. It was one of the few countries in the world that recognized the al-Qaida-friendly Taliban government in Afghanistan; al-Qaida funneled millions of dollars through the U.A.E. financial sector; and A.Q. Khan, the notorious Pakistani nuclear technology smuggler, used warehouses near the Dubai port as a key transit point for many of his shipments.

Since the terrorist attacks, it has cut ties with the Taliban, frozen just over $1 million in alleged terrorist funding, and given the United States key military basing and over-flight rights. At any given time, there are 77,000 U.S. service members on leave in the United Arab Emirates, according to the Pentagon.

Deputy Defense Secretary Gordon England warned that the uproar about the United Arab Emirates involvement in U.S. ports could risk alienating the very countries in the Middle East the United States is trying to court as allies in the war on terrorism.

"It's very important we strengthen bonds ... especially with friends and allies in the Arab world. It's important that we treat friends and allies equally around the world without discrimination," he said.

The security of port terminal operations is a key concern. More than 7 million cargo containers come through 361 American ports annually, half of the containers through New York-New Jersey, Los Angeles and Long Beach, Calif. Only a small percentage are physically searched and just 37 percent currently screened for radiation, an indication of an attempt to smuggle in nuclear material that could be used for a "dirty bomb."

After the September 11 terrorist attacks, the government began a new program that required documentation on all cargo 24 hours before it was loaded on a ship in a foreign port bound for the United States. A "risk analysis" is conducted on every shipment, including a review of the ship's history, the cargo's history and contents and other factors. Each ship must also provide the U.S. government 96 hours notice of its arrival in an American port, along with a crew manifest.

None of the nine administration officials assembled for the briefing could immediately say how many of the more than 3,000 port terminals are currently under foreign control.

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.

In a January report, the Council on Foreign Relations pointed out the vulnerability of the shipping security system to terrorist exploitation.

Since the Sept. 11 terrorist attacks, the U.S. customs agency requires shippers to follow supply chain security practices. Provided there are no apparent deviations from those practices or intelligence warnings, the shipment is judged low risk and is therefore unlikely to be inspected.

CFR suggests a terrorist event is likely to be a one-time operation on a trusted carrier "precisely because they can count on these shipments entering the U.S. with negligible or no inspection."

"All a terrorist organization needs to do is find a single weak link within a 'trusted' shipper's complex supply chain, such as a poorly paid truck driver taking a container from a remote factory to a port. They can then gain access to the container in one of the half-dozen ways well known to experienced smugglers," CFR wrote.


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events; War on Terror
KEYWORDS: nationalsecurity; ports; uae
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To: Dane

Hmmm...rather scary that we agree so much on this issue.

Did you feel the shift in the Earth's axis?


81 posted on 02/24/2006 8:57:13 AM PST by Eagle Eye (There ought to be a law against excess legislation.)
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To: indcons

According to Kimmitt, the deal was reported on in major newspapers as early as last October. But it did not get critical attention in the press until the Associated Press broke the story Feb. 11 and the Center for Security Policy, a right-leaning organization, wrote about it Feb. 13. CSP posited the sale as the Treasury Department putting commerce interests above national security.

Apparently no one in congress (or many on this site)reads the business section


82 posted on 02/24/2006 9:07:03 AM PST by kaktuskid
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To: SandyInSeattle
Best they can hope for is to cross train everyone so that they can work either place.

That's pretty much what is going on here, but with resistance from both ends.

83 posted on 02/24/2006 9:16:39 AM PST by Marine Inspector (Government is not the solution to our problem; Government is the problem)
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To: Kjobs

I say, let them buy 21 golf courses. I have absolutely no problem with that. Not 21 ports.


84 posted on 02/24/2006 9:19:34 AM PST by Flavius Josephus (LSM: Controversy, Crap, & Confusion, denial, decrial, dismissal, degradle.)
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To: Marine Inspector

Thanks for the link. Guess we are left with that these are jobs Americans won't take so we need to import foreign talent.


85 posted on 02/24/2006 9:28:02 AM PST by ex-snook (God of the Universe, God of Creation, God of Love, thank you for life.)
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To: ex-snook
The previous company was UK and the new company is UAE. That fact that a UAE company purchased a UK company does not affect US jobs.

The vast majority of the works at the ports are and still will be US Citizens. The changing of management won't affect American jobs.
86 posted on 02/24/2006 9:33:02 AM PST by Marine Inspector (Government is not the solution to our problem; Government is the problem)
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To: hedgetrimmer

I've been thinking about Iraq and the reasons we've been given to go to war.

Like possible weapons of mass destruction. Aiding Al-Quida. Radical Islamic influence. Refusal to recognize Isreal. Transit point for terrorists. Relationship with Bin Laden.....

Oh, nevermind, that's the UAE.

In other words, we had more reason to attack the UAE than Iraq!


87 posted on 02/24/2006 9:39:59 AM PST by WatchingInAmazement ("Nothing is more expensive than cheap labor," prof. Vernon Briggs, labor economist Cornell Un.)
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To: WatchingInAmazement

LOL! Strange how we rely on the UAE's ports and operations to maintain the logistics support of our troops in the field and trust them to provide port services to the largest collection of U.S. Navy ships outside the U.S. itself.


88 posted on 02/24/2006 9:43:00 AM PST by CWOJackson
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To: CWOJackson; WatchingInAmazement
Strange Treasonous how we rely on the UAE's ports and operations to maintain the logistics support of our troops
89 posted on 02/24/2006 9:46:24 AM PST by hedgetrimmer ("I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)
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To: hedgetrimmer

Yep, you have to hate treasonous people like General Tommy Franks. What does he know about national security, terrorism, the middle east and the UAE?


90 posted on 02/24/2006 9:49:52 AM PST by CWOJackson
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To: CWOJackson; Dane

On Fox just a bit ago, they said that UAE is taking over TWO terminals out of 182 in NYC.

Two.

2.


91 posted on 02/24/2006 9:51:17 AM PST by Howlin ("Quick, he's bleeding! Is there a <strike>doctor</strike> reporter in the house?")
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To: indcons
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.

Call me a cynic, but I have the feeling that attorney Muldoon and his client aren't opposing this deal out of an altruistic concern for my "safety."

92 posted on 02/24/2006 9:52:28 AM PST by colorado tanker (We need more "chicken-bleep Democrats" in the Senate!)
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To: Marine Inspector
"The previous company was UK and the new company is UAE. That fact that a UAE company purchased a UK company does not affect US jobs."

So what? It's still importing foreigers to do jobs Americans won't do or our companies won't accept.

93 posted on 02/24/2006 9:52:35 AM PST by ex-snook (God of the Universe, God of Creation, God of Love, thank you for life.)
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To: Howlin

Fox is just trying to cover up for President Bush! We all know they're bushbots.


94 posted on 02/24/2006 9:53:02 AM PST by CWOJackson
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To: commish

Only takes one nuke to ruin your whole day.


95 posted on 02/24/2006 9:58:48 AM PST by The Sons of Liberty (Former SAC Trained Killer)
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To: CWOJackson
LOL! Strange how we rely on the UAE's ports and operations to maintain the logistics support of our troops in the field and, blah, blah, blah....

Keep laughing. We once partnered up with Saddam and Bin Laden. So what?

96 posted on 02/24/2006 10:00:12 AM PST by WatchingInAmazement ("Nothing is more expensive than cheap labor," prof. Vernon Briggs, labor economist Cornell Un.)
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To: i_dont_chat
WRT post 44, don't you think those deep within the administration have seen what influence FR has on the direction of the thought process within the blogsphere? Could it be that there are folks paid for by us (taxpayers) who spend their days blogging here and elsewhere attempting to sway CW? I think so and I think you and I and many others can name some of those whom we may expect to be on the job, as it were.
97 posted on 02/24/2006 10:01:34 AM PST by Final Authority
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To: WatchingInAmazement

LOL! And we now rely on DP World and the UAE to provide key logistical support to our troops in the field and the largest collection of U.S. Navy ships outside of the U.S. Of course that decision was made by people with real knowledge of the situation and no political axe to grind.


98 posted on 02/24/2006 10:02:14 AM PST by CWOJackson
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To: CWOJackson

Gen. Franks admitted the issue was political. So was the forced bunkering of the USS Cole in Yemen by Gen. Zinni. So what are you saying?


99 posted on 02/24/2006 10:02:27 AM PST by hedgetrimmer ("I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)
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To: hedgetrimmer

Comparine General Zinni with General Franks...how predictable. General Franks has had nothing but positive comments regarding the UAE, their support of the WoT and their ability to manage the ports.


100 posted on 02/24/2006 10:04:18 AM PST by CWOJackson
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