Date:03/04/2006 URL: http://www.thehindubusinessline.com/2006/04/03/stories/2006040300360600.htm

Back Where is the threat?

Santanu Sanyal

Facts failed to quell the uproar in the US over the Dubai-based company DP World's bid to take over P&O's six port terminals in the US and to stop the subsequent cancellation of the bid.

Logical arguments cut no ice with American politicians determined to scupper the deal. The Arab firm was seen as a threat to the security of the US. Facts, however, belie such apprehension.

Security screening at American ports is the responsibility of the US Government and not the terminal operator.

The US Coast Guard retains overall charge of all US and international maritime security laws in US harbours, including the International Ship and Port Security Code and the Maritime Transportation Security Act.

As a US subsidiary, DP World's operations would have been subject to US immigration and labour laws.

Which means all workers employed by the company would be either US citizens or people otherwise screened or authorised by the authorities concerned in the US. DP World would have inherited a workforce that is already American.

US Customs and Border Protection officials are already stationed in Dubai to pre-screen US bound containers originating in the Emirates.

In December 2004, the UAE became the first West Asian port to join the US Container Security Initiative.

Around the same time, DP World paid $1.4 billion for the global port assets of the US-based CSX Corporation, outbidding world's two biggest container operators. Mr John Snow, US Treasury Secretary, is the former Chairman of CSX.

A senior executive of DP World has been drafted as the next US Maritime Administrator.

US Navy regularly uses Jebel Ali port's facility managed by DP World.

Several Arab nationals own assets, property and shares in the US.

In January 2005, the government of Dubai became the third largest shareholder in German-American automaker, DaimlerChrysler, spending $1 billion in the process.

The Venezuelan President, not particularly known for his intimacy with the US administration, controls Citgo, and its terminal and refinery in Philadelphia.