Deal gives Dubai firm control of 23 U.S. ports - Eller lobbied Schumer - Causing this uproar

Buffalo News ^ | 3/4/2006 | Douglas Turner

[Solson]

WASHINGTON - A Dubai-owned company will control 23 American ports - not six - as a result of the deal approved by a Bush administration panel in January.

The takeover of the British company Peninsular and Oriental Steam Navigation Co. involves almost every major Atlantic seaport from Portland, Maine, to Miami and along the entire Gulf Coast, according to an attorney fighting the deal.

The list includes Port Arthur and Beaumont, Texas, which have handled about 40 percent of the war materiel the Army has shipped to combat theaters in Iraq and Afghanistan.

It also includes Norfolk, Va., home to most of the U.S. Navy's Atlantic fleet, along with three seaports in Louisiana that handle massive shipments of crude oil.

In the spreading controversy, it was known that the British firm being bought by Dubai Ports World runs operations at New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

Attorney Joseph Muldoon III represents Eller & Co., a Miami-based shipping firm that is fighting the transaction here and in Britain's highest court.

In an interview, the attorney said Eller & Co. does not want to become an unwilling partner of DP World's Miami operations.

Muldoon told The News he unsuccessfully appealed two months ago to Sen. John Warner, R-Va., whom he knows personally, and also saw staff members for Sen. Kay Bailey Hutchison, R-Texas, to stop the sale on national security grounds.

"I'll check it out," Muldoon quoted Warner as responding.

"Finally, I went to Sen. [Charles E.] Schumer because he is a member of the Senate Banking Committee, which oversees the Treasury Department board which approved this thing. If this hadn't been for Sen. Schumer," Muldoon said in an interview, "this issue would never had gotten any traction.

"My client, and I personally, believe that the seaports of this country should not be run by a foreign government," Muldoon said.

He said claims by the Bush administration that security is not involved is a myth.

"The port operator is the one who lays out the security plan," he said, "and the Coast Guard and other government operations follow suit."

In London, Eller & Co. attorneys have been given the right to appeal the deal by Britain's highest court. It was not until Muldoon called Schumer's office three weeks ago that it bloomed into an issue that threatens the president's hold on Republican majorities in the House and Senate.

"I had an instinct about this situation," Schumer said, "and it was to keep it as bipartisan as possible. So I went first to [Sen. Tom] Coburn [R-Okla.] and he was very concerned."

Muldoon said "Schumer was hanging out there all alone on it until" Rep. Peter King, R-N.Y., announced his opposition. King is chairman of the House Homeland Security Committee.

Both national and statewide polls indicate the planned takeover of operations of American ports has helped plunge Bush to the lowest ratings of his presidency.

A New York poll done by the Republican-oriented Strategic Vision LLC gives Bush an overall approval rating of 24 percent. National polls have Bush at between 36 and 39 percent.

In the state survey, 81 percent of respondents think an act of terrorism is more likely if the Dubai ports deal goes through.

Although the Bush administration officially approved the deal Jan. 16, DP World, the company owned by rulers of the United Arab Emirates, has requested the United States conduct a 45-day review of the transaction in an effort to defuse opposition.

Schumer and King are sponsoring nearly identical bills that would empower Congress to block the deal if Congress is dissatisfied with the results of the review.

Rep. Thomas M. Reynolds, R-Clarence, was an early supporter of King's bill, which now has 97 co-sponsors. Backers include almost the entire state delegation.
Bureau assistant Sara Blumberg contributed to this article.

e-mail: dturner@buffnews.com

[dalight]

Honestly.. you are wrong.. this was in the press several times... but it was a yawn.. this blew up.. because of something that has changed since this fall.. and if I am wrong.. some other change has made this radioactive..

But I could feel inside of myself.. just before the ports deal hit.. I was finally at the point were I was concerned that their may not exist anything such as a "moderate" Muslim. That perhaps the US and our people are just completely threatened by a force that can demand that our press respect it.. where as Christians, Buddhists, and all others have no such protection..

Thats where I was.. but slowly, this deal and the details of it crept back into my head the fact that allies and even temporary friends matter when you are at war. And, all the more so we find ourselves at War.. facing direct threats of annihilation by the Iranians.. made even yesterday and we are about to upset the most important ally in the region for no apparent gain.. and by the by.. also undercut the start of real capitalism that would be the most significant force possible for reforms in the Mid-East.. all in one fit of rage and unthinking reactionism..

This whole deal screwed the conservatives and republicans by allowing us to be manipulated into seeming racist, reactionary, and unreliable partner for foreign capitalists. Now.. that we are waking up.. like after a drunken binge..we are finding just how badly we have hurt ourselves and our cause.. and the Rats are laughing and seeking another controversy to do it all over again.

[babygene]

"But I could feel inside of myself.. just before the ports deal hit.. I was finally at the point were I was concerned that their may not exist anything such as a "moderate" Muslim."

Perhaps you just woken up to this, but many of us have never believed it. And Bush still hasn't.

There are Muslims, and there are back sliding Muslims that don't practice their faith (they would be the moderates)...

[truthpls]

"The political class of Washington continues to PROTECT the Clintons, et al."

But why?

[dalight]

I understand your point.. but I am trying to say.. its silly. In the old testament, Saul earns gods wrath and the loss of his kingdom because he chooses not to kill every man, woman and child of a conquered tribe. His sin was not to commit what we would all agree today would be an atrocity..

Islam has several (in the eyes of western culture) serious problems.. the concept of infidels non-believers being less than human, the concept of innocence of the "heart" that excuses a sin of outward action.. the concept of death or submission.. The list of serious problems is long.. but like modern enlightenment has scrubbed the edges off of very similar positions.. such as the Spanish Conquistadors used to justify genocide and slavery of the America's and you get what we see as civilization.. Most Muslims are more interested in civilization rather than attempting Hegemony, more interested in burnishing the rough edges off of Islam and bringing it to an enlightenment too..

UAE is creating a financial form that allows the creation of a Debt instrument that is consistent with Islam.. a building block for capital formation that has been a deep problem for all Middle Eastern companies.. that are forbidden from basic elements of business and commerce.. time marches on.. Christians mostly avoided Debt instruments all of the way up until the late 19th century, this is new for American society so that it is understandable..

You may be hopeless, but as we are sending trillions of dollars to the Middle East.. if this money isn't worth anything.. this fact will come back to haunt us in the worst possible ways..

If you really care.. and believe that Islam is the "problem" then you just need to take your life into your hands and do something about it for real... perhaps a Mission to Saudi Arabia? That would be interesting.. but otherwise.. 1.5 Billion enemies.. is alot.. especially when they are having kids and we are not.

[Kimberly GG]

I always respect your opinions. Any chance you might weigh in on my question at #50?

[dalight]

Frankly, by far and away, most of the victims of Islamist violence and repression are Muslims, not westerners.. "Moderate or enlightened Muslims" do not fear the Spanish Inquisition.. they fear their crazy neighbor.. you have to understand this..

But also, just like so many other things.. once you understand something you can deal with it.. even the issues of Islam.. its just hell to get a Security clearance if you are a devout Muslim, because there is no way of believe that any commitment is permanent.. but yet.. commitments made can be counted on as long as made and kept from a position of strength.. and we are used to this.. we have lived with this in our Mutual Assured Destruction doctrines and others.. that don't depend on a party to an agreement being trust worthy..

Lots of business is done with people who are absolutely not trustworthy.. its done by creating a interlocking set of benefits and consequences that assure good behavior or liquidate the damages of poor behavior.. in a cost effective fashion..

The people we deal with don't have to be saints.. we just need to tools to assure that the consequences are greater in the mind of our potential partner than any benefit that can be had by betraying us.

[La Enchiladita]

For some reason these type of facts have not been found in many postings.

Nor are the 'conspiracy' posters interested in them.
Thanks for clarifying.

[Cboldt]

If that's the case, why didn't any of these American companies bid on the deal in the first place? OR,
was the 'deal' , the entire P&O package, bigger than any American company could afford and so no American company bid on it, but the American portion ONLY is affordable?

The bidding war between PSA and DPW for P&O's operations was quite the visible affair, and well known in the circle of companies who do shipping as their business.

I figure as a matter of business, P&O didn't want to "part out" its operations, and PSA and DPW didn't want to buy out a "part" of the business. P&O as a company NO LONGER EXISTS.

So yes, the picture is completely different on a parting out basis - cheaper to buy a wheel than to buy the whole car.

I have a bad feeling about Eller - if you've been reading my posts, you know why. I am not sure if they have the wherewithal to buy all of the US interests in what was P&O's portfolio, but that's just because I don't know the size of Eller. I suspect there are other companies, perhaps bigger ones, also poised to take a whack at this. DPW will hold out for the highest price. SSA is another company name I picture having an interest.

Id also like to know why Schumer, given his position, was not aware of this deal prior to being confronted about it?

I don't believe Schumer operates from a position of not knowing what's behind the scenes.

At any rate, the resale, if you will, of US interests of what was P&O will probably be a complicated affair of its own right.

[Kimberly GG]

Thank you. I'll continue to read, listen and learn from these threads as more develops!

[syriacus]

Schumer ... is a member of the Senate Banking Committee, which oversees the Treasury Department board which approved this thing.

In other words, Schumer could have screamed about the DPW takeover of P&O awhile back, yet

Schumer chose to make his objections at the last minute
Schumer (and Peter King) must have known that both of the companies bidding on P&O were owned, directly or indirectly, by foreign governments..(The other company is owned by Singapore).

[syriacus]

I'd also like to know why Schumer, given his position, was not aware of this deal prior to being confronted about it? anyone?

Excellent question.

Unless Schumer was neglecting his duties he must have known that both companies bidding on P&O were owned by foreign governments.

The other company was PSA, owned (perhaps somewhat indirectly) by the Singapore government.

PSA has had a working relationship with Beijing's smuggling, gun-running company, COSCO (which operates at least one terminal in the US) and indications are that COSCO and PSA intend to work closely together in the future.

Would Schumer have objected to a PSA takeover of P&O?

Peter King must have been aware of the implications of a P&O sale, too....unless he is totally inept.

[Dolphy]

The list of serious problems is long.. but like modern enlightenment has scrubbed the edges off of very similar positions.. such as the Spanish Conquistadors used to justify genocide and slavery of the America's and you get what we see as civilization.. Most Muslims are more interested in civilization rather than attempting Hegemony, more interested in burnishing the rough edges off of Islam and bringing it to an enlightenment too...

Thanks for a great post. I often think that we are, in some ways, a lucky country to not have a 1,000+ year history to carry...but then it might also account for the naivete of some.

[syriacus]

They gave the President a well earned personal smite.

What did he do that earned him a smite?

[malia]

bump!!

[babygene]

I do want to tell you that I appreciate your well thought out posts and responses...

[babygene]

"If you really care.. and believe that Islam is the "problem" then you just need to take your life into your hands and do something about it for real... perhaps a Mission to Saudi Arabia? That would be interesting.. but otherwise."

Just because I appreciate your well thought out posts, doesn't mean I agree...

What we really need to do is bite the bullet, and don't buy any of their G. D. oil, and let them go back to herding camels.

If us not buying their oil didn't work, I'd contaminate there oil for the next couple thousand years by making it radioactive. The world would adjust... There going to run out of it soon enough anyway, might as well be sooner rather than later.

[ARCADIA]

What did he do that earned him a smite?

Two things:
1) Failed to listen
2) Failed to explain himself

[dalight]

You are very kind.

We have to face the fact that we cannot continue to send money to this part of the world and not expect to have this money come back and try to buy everything we have.

You are right, we have to cut back on our dependence on foreign oil as a matter of our lives and future..

Still this isn't enough. A world of 7 billion Muslims and 400 million Americans living completely apart is not a workable reality. The game is over if it ever reaches that point.

There is the possibility of co-existance or there is not.. if there is the possibility of co-existance, we have shot ourselves in the foot badly this week.

[AnimalLover]

BUMP

[Wasanother]

I smell kickback! Follow the money.