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Revision as of 03:18, 10 March 2006
 | This article documents a current event. Information may change rapidly as the event progresses, and initial news reports may be unreliable. The latest updates to this article may not reflect the most current information. |
| Company type | Public (Government-owned) |
|---|---|
| Industry | Transport |
| Founded | 1999 |
| Headquarters | Dubai |
Key people | Mohammed Sharat (CEO) Ted Bikey (COO) V Sharma (Finance) M Moore (Commerical) |
| Products | Ferries, port services, logistics services: |
| Revenue |  $- USD |
Number of employees | - |
| Website | www.dpiterminals.com/ |
Dubai Ports World (or DP World for short) is a company owned by the government of Dubai in the United Arab Emirates.
In 2006, it agreed to purchase the Peninsular and Oriental Steam Navigation Company (P&O) of the United Kingdom, which was then the fourth largest ports operator in the world, for £3.9 billion ($7 billion), beating a bid from Singapore's PSA International of £3.5 billion. P&O is one of the most famous names in British business, having been the largest shipping operator in the world at one time. DP World has promised to keep P&O's headquarters in London.
DP Terminals was founded in 1999 and DP World was created by a merger between the Dubai Ports Authority (DPA) and an international business, DPI Terminals.
Facts
- (2/22/06) Shareholders at Britain's P&O, who had been managing the ports, voted last week in favor of Dubai Port's multibillion dollar bid, giving the firm control over the management of P&O's global operations, including in the U.S. ports of New York and New Jersey, Baltimore, Philadelphia, New Orleans and Miami.
- The deal would make Dubai Ports World the world's third-largest ports group.
- Dubai Ports World purchased the global port assets of U.S. freight rail company CSX Corporation in 2005 for $1.15 billion. U.S. Treasury Secretary John Snow is a former chairman of CSX, but left the company a year before the Dubai deal. CSX had earlier sold an American shipping and port company to a major Danish shipping company during Snow's tenure.
- One of DP World's top executives, Dave Sanborn, was nominated by President George W. Bush in January to become the administrator of the Maritime Administration in the U.S. Department of Transportation. At least one senator plans to hold up Sanborn's confirmation until more questions about the port deal are answered.
- Dubai Ports has international operations in the Dominican Republic, Venezuela, Germany, Romania, Morocco, Saudi Arabia, Djibouti, India, China, Hong Kong, Malaysia, South Korea and Australia in addition to the UAE.
- While doing business as a private company, Dubai Ports World, like Emirates Airlines, is a 100% State Owned Enterprise. It is controlled by the royal family of United Arab Emirates member, Dubai. [1]
Port security controversy
P&O operated major U.S. port facilities in New York, New Jersey, Philadelphia, Baltimore, New Orleans, and Miami. After the deal was secured, the arrangement was reviewed by the Committee on Foreign Investment in the United States headed by the U.S. Treasury Department and including the Departments of State, Commerce, and Homeland Security. It was given the green light, but soon after, both Democratic and Republican members of Congress expressed concern over the potential negative impact the deal would have on port security. They cited the 9/11 Commission report, which stated that two of the 9/11 hijackers were UAE nationals, and reports that the UAE was a major financial base for the al Qaeda terror network. Republican leaders Dennis Hastert and Bill Frist, usually working in close synchronization with the office of the President, came out to publicly question the deal. Frist said in a statement, "If the administration cannot delay the process, I plan on introducing legislation to ensure that the deal is placed on hold until this decision gets a more thorough review." [2] Representative Sue Myrick (R-NC) sent a one-sentence letter to the president that read, "Dear Mr. President: In regards to selling American ports to the United Arab Emirates, not just NO — but HELL NO!" [3]
On February 22, 2006, President George W. Bush threatened to veto any legislation passed by Congress to block the deal, which would be the first time in his presidency he would exercise the privilege. In a statement to reporters, Bush claimed, "It would send a terrible signal to friends and allies not to let this transaction go through." [4]
The controversy has created a public and unusually high-profile dispute within the Republican Party, and between the Republican-controlled Congress and the Republican-controlled White House.
The debate has curiously divided the opposing sides into mixed camps, with the New York Times, Lindsey Graham, The New Republic, Sean Hannity, Michael Savage, Laura Ingraham, Bill Frist, Chuck Schumer, Hillary Clinton, Robert Menendez, Frank Lautenberg, John Gibson, Jon Corzine, the New York Post, and Peter King opposing it, while the Wall Street Journal, the Los Angeles Times, the Washington Post, Rush Limbaugh and Bill O'Reilly supporting it.
On February 23, 2006, DP World volunteered to postpone its takeover of significant operations at the seaports to give the White House more time to convince lawmakers and the public that the deal poses no increased risks from terrorism.
External links
- Official site
- BBC story on takeover of P&O
- Bush Administration Sells Port Security To Highest Foreign Bidder (Daily Kos)
- Administration Outsources Operations Of Six U.S. Ports To The United Arab Emirates (Think Progress)
- Republican Congresswoman Sue Myrick's letter to President Bush regarding the DP World ports purchase
- SourceWatch article on DP World
- The DP World case : an American security obsession