N.J. judge says port lease remains valid

Associated Press / Business Week ^ | March 9, 2006 | JANET FRANKSTON

[Cboldt]

MAR. 9 12:29 P.M. ET A New Jersey judge on Thursday axed a bid by officials from two states to end Port Newark's lease with a company that plans to sell operations at major U.S. ports to an Arab-owned company.

Superior Court Judge Patricia K. Costello denied a request by the Port Authority of New York and New Jersey to immediately terminate its 30-year agreement with London-based Peninsular & Oriental Steam Navigation Co. However, the judge said the bi-state agency's lawsuit against the company can continue. ...

Under the $6.8 billion deal, DP World would take over major commercial operations at ports in New York and New Jersey, as well as Baltimore, Miami, New Orleans and Philadelphia. Meanwhile Thursday, Republican congressional leaders told President Bush the plan to allow the deal faces certain defeat in Congress, GOP officials said. ...

Berry called the case a commercial dispute and said the Port Authority was notified of the planned sale via e-mail on Jan. 3.

Berry also said the ownership change would not result in changes of people on the ground who were actually running the port's day-to-day operations.

[Cboldt]

Likely a non-issue now that DPW plans to transfer it's interests in US operations to a different entity.

[SouthTexas]

Someone should send this to Congress.

[technomage]

Someone should send this to Congress.

No need to. Deal is finished, caput, over. DPW already announced a complete divestiture of all holdings within the USA.

[trebb]

I wonder what kind of bottleneck would occur if they managed to terminate the agreement. If the answer is "none, because all the main players would not really change" then it is further indication that this is much ado about politics and nothing else.

[K-oneTexas]

They will not listen. The Illustrious Sen. Harry (The Crusader) Reid and Sen. Charles (Defender of the People) Schumer have just said they want an up-or-down vote on the ports deal in the Senate. If the Republicans want it on judges they want it here to put the Senate on record. Citing the House Committee that just voted to tall "the White House" that the deal was dead. As always Reid cited the 'mismanagement of the Administration on Katrina, No Child Left Behind, the Ports Deal and on and on and on".

[glowworm]

DPW should $ue $ue $ue.. and hurt hurt hurt.. They OWN.. it i$ their right to recover damage$, even punitive, for lo$$ of financial and image damage$. If we are a country of laws.. we should respect them.

[SouthTexas]

I know, it's a bit late. Was referring to their perceived control over the world's business community.

[linn37]

Someone ask them how to vote on a dead deal. These clowns should be laughed out of town.

[SouthTexas]

Not wishing our longshoremen to be laid off, but the should shut the terminals down. The lease belongs to DPW whether Congress likes it or not.

The MSM has shown they still pack a punch. It's the "President's" fault, like he brokered and negotiated the deal in the first place!

[jujigatami]

From what I can figure out about this "divestiture" nothing will actually change.

A US holding company will be bought or created, and the leases will be sold to them. The US holding company will then most likely outsource its operations to P&O in London, and P&O will get the profits and deliver them to DPW.

So instead of a British company owned by a Dubai company running the terminals, a US company will hold the lease and a British company (P&O) owned by DPW will continue to do all of the work.

Nothing will change except who writes the checks... but then nothing would changed if DPW ran the terminals either.