Posted on 02/16/2006 1:40:18 PM PST by Stellar Dendrite
This particular piece of spin -- that DP World will have no responsibility for security -- is remarkable hogwash. As stated in an article from the Houston Chronicle:
DP World said it had received all regulatory approvals. "We intend to maintain and, where appropriate, enhance current security arrangements," the company said.
I have no reason to doubt the accuracy of this quote from DP World. Furthermore, operations cannot be segregated from security, and to imagine that the two can be miraculously segregated is to lapse whole hog into fantasy.
In addition, you asked for some background on the transaction.
Dubai Ports World (DP World), a Dubai state-owned company, is purchasing P&O Group for $6.8 billion.
P&O Ports is the P&O Group company responsible for port development, investment, operating and stevedoring activities. It operates approximately 31 container, general cargo, and passenger terminals in New York, New Jersey, Philadelphia, Baltimore, Miami, New Orleans, and Vancouver, and owns half of Norfolk's CP&O Ports Virginia, the largest stevedoring service in Hampton Roads.
A little history of a part of P&O's US operations gives you a flavor of what is being transfered to DP World:
International Terminal Operating Company, Inc. (ITO) was founded in 1921 by Captain Franz Jarka. Originally called The Jarka Corporation, the company specialized in handling freight and passengers in the Port of New York. Soon, The Jarka Corporation expanded its services to encompass the ports of Boston, Philadelphia, Baltimore, and Hampton Roads, Virginia. In 1962, ITO was acquired by Ogden Corporation. In 1983, the company merged with John W. McGrath Corporation, which included Atlantic and Gulf Stevedores, Inc. and integrated their North Atlantic and Gulf Coast operations. Ogden and McGrath continued to share ownership of ITO.ITO opened its first public container handling facility in 1967, and it was among the first to utilize computers in its terminal operations. The company used the latest technology to coordinate all its port activities, including receiving and delivery functions, cargo documentation, and terminal security. ITO worked with many of the largest container, break-bulk, and specialized cargo carriers in the world and became one of the largest stevedores and marine terminal operators in the United States. In 1999 the United Kingdom-based Peninsular and Oriental Steam Navigation Co. (P&O) acquired ITO. The company then became part of P&O Ports, one of P&O's many subsidiaries. P&O Port's operations spanned 17 countries around the globe. In all, P&O Ports ran 24 container terminals in 84 ports.
And now, of course, DP World is the proud owner of the former P&O Ports, complete with its former ITO operations and acquired operations in New Jersey, Miami, New Orleans, and Vancouver.
And as noted in Forbes (during the bidding war for acquisition of P&O):
A deal would make the combined company the third-largest ports operator in terms of capacity, lifting DP World up from its current rank as No. 7.DP World made the first formal approach for P&O in November, when it offered 3.3 billion pounds ($5.9 billion) for the 165-year-old company.
The concerns, of course, are: (1) Dubai state ownership of DP World; (2) that Dubai has a rather ignoble and disturbingly direct history of ties to terrorist funding and transit; (3) that DP World's ownership rights over existing North American terminal infrastructure and operations comes complete with extant leasehold, stevedoring, wharfage, and seaway rights; and (4) that the CFIUS did not conduct a 45-day investigation on top of the initial 30-day review that it usually gives to foreign purchases of U.S. businesses.
This transaction stinks for purposes of US homeland security, and it stinks even more that it was given so little scrutiny.
Snow is Chairman of a committee called CFIUS, which is comprised of the following members which authorized the Dubai purchase at the ports: This is not about typing a bunch of unrelated info, but possibly very intertwined info. Sometimes my mind just cant wrap around conspiracy theories, so I won't. The decision does not seem thorough, here is the committe, chaired by Snow:
Assistant to the president for Economic Policy: Allan Hubbard (Bush's college buddy)
Secreatry State: Condi
Secretary Defense: Rumsfeld
Homeland Security: Chertoff
Secretary Commerce: Carlos Gutierrez, Appointed 2/7/05 by Bush
Attorney General: Alberto Gonzales appointed 2/3/05 by Bush
Director of Office of Management & Budget: Joshua Bolton (Director Bush/Cheney presidential campaign)
US Trade Rep/WTO Rep: Robert Jones (Republican/Ohio), app 4/23/05
Director of Science & Technology: John Marburger, appted 10/01/Bush
National Security advisor, Stephen Hadley, appointed 2005 Bush
Chairman of Council of Economic Advisors: Katherine Baicker & Mattehw Slaughter/appointed by Bush.
I hope they are all doing their jobs. Don't get me wrong -I am a Bush supporter, this is not about Bush, but about why on earth are they considering such a ridiculous deal
Sorry, Sorry. I really didn't mean for that to sound accusatory!!
I was under the impression that cfius was a secret committee or at least acted in secrecy?
Like the sale of that oil company sometime in 2005 (can't remember it's name) this sale must be stopped.
Can Congress by sheer force put the kibosh on this
The real question is, "Was any other companies aware of the contract availability?"
Notice the handshake?
The moose underbid your sister.
I suspect all this will do is cause the Dems to create a law that forces pure US company ownership of port operations. That would in turn force the foreign owners to simply create US companies as shields for their interests, keeping their involvement to financial control over operational control.
IMHO, the largest threat to the US today now comes from domestic enemies of the US. The next series of battles will lay within our legal framework, wherein anythink Christian will be further attacked.
Nein, he bit her under!
that is what I thought too (the curiousity got the best of me), so I did a little research and was able to get the positions of each person who makes up the committee. After that, it's just looking them up. Thought it may be interesting...
Oh Geez, this is not looking good. I don't think UAE is going to be loyal to anything, but their wallet.
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
bump
Good interview on Mark Levin's radio show. Listen to the replay while you surf and post. Go to http://marklevinfan.com/ and then click the microphone under the following title & excerpt:
While the coconuts in the MSM were busy trying to slime VP Cheney…
Our ports have about the greatest vulnerability, and they cannot be controlled in any way by Arabs who don't like us. This is just plain NUTS.
It is my understanding that this is the doing of the Treasury Department, and they don't have a clue about security, but SHOULD.
if you really want to do some reading:
www.fas.org/sgp/crs/homesec/RL31733.pdf
is the CRS Report for Congress on Port & Maritime Security.
It contains data, scenarios and concerns.
http://www.freerepublic.com/focus/f-news/1580971/posts?page=90#90
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.