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Do you work at a port? Are you familiar with how port security is handled? Do you want to see what the Port of Houston's official position is?

Fact Sheet: Implication of the Proposed Acquisition of P&O Ports by Dubai Ports World on the Port of Houston Authority

HOUSTON, Feb. 23, 2006 -- The recent announcement of plans by the Dubai Ports World (DP World) to purchase P&O Ports (P&O) will not have an impact on any of the facilities or operations of the Port of Houston Authority (PHA).

The PHA is a political subdivision chartered by the state of Texas. It owns and either operates or leases 12 public facilities. The PHA does not own or operate private facilities.

Specifically in Houston, P&O leases space at the PHA's Barbours Cut Container Terminal for container and chassis repair and container storage. At the PHA's Turning Basin Terminal, P&O maintains a freight handling assignment and is licensed to provide stevedore services. P&O does not own or operate public (PHA) facilities.

P&O, a private company headquartered in London, is involved in worldwide container terminal operations and stevedore services for the maritime industry.

The Port of Houston comprises more than 150 public (PHA) and private terminals along the 53-mile Houston Ship Channel. The port's private terminals include several U.S.-based, foreign-based and multi-national corporations. Approximately 85% of cargo that moves through Houston's port is handled at private facilities. A large portion of the port's private facilities are engaged in production, refining and transportation operations related to the global oil, gas and chemical industries.

PORT SECURITY

All port facilities in the U.S. that are engaged in commercial activities across interstate lines or international borders -- whether public or private, domestic or foreign -- are subject to state and federal security statutes as well as the rules and regulations of the U.S. Department of Homeland Security and other federal agencies.

The federal government takes the lead in protecting America's ports. The U.S. Department of Homeland Security, primarily through the activities of Customs and Border Protection (CBP) and the U.S. Coast Guard, runs many programs to secure U.S. ports. The U.S. Coast Guard is responsible for maritime security and reviewing and approving security plans for vessels, port facilities and port areas which are required by the MTSA. Customs and Border Protection is responsible for cargo security, and screens and inspects cargo entering the U.S. through every U.S. port.

Other cargo security programs include:

 -- Container Security Initiative (inspection of U.S. import cargo 
    by CBP prior to leaving the outbound foreign port)
 -- Use of radiation detection equipment to screen for weapons of 
    mass destruction
 -- Use of other non-intrusive inspection devices
 -- Customs Trade Partnership Against Terrorism (C-TPAT), which 
    encourages maritime stakeholders to verify their security 
    measures.

The Port Security Grant program and the pending implementation of the Transportation Worker Identification Credential (TWIC) are also important parts of America's port security portfolio to provide layered security.

While the federal government takes the lead on waterside and cargo security, overall security is a shared responsibility with port authorities, facility and vessel operators, and state and local law enforcement agencies providing additional security. The Maritime Transportation Security Act also establishes local security committees to evaluate and make improvements in each port.

In general, port infrastructure throughout the U.S. and around the world consists of diverse collections of docks, warehouses, and terminals. For the past two decades, it has been a common maritime industry practice for private port facilities in some countries to be operated by organizations that are based in other countries. This is widely regarded as the nature of trade and commerce in today's global economy.

For more information, please visit www.portofhouston.com .

The Port of Houston Authority logo can be found at: http://media.primezone.com/prs/single/?pkgid=720

CONTACTS:  Port of Houston Authority 
           Argentina M. James, Director of Public Affairs 
           Office: (713) 670-2568 Cell: (713) 306-6822
           ajames@poha.com