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Outrage grows over deal with Dubai company on U.S. ports(South Florida Sun-Sentinel (KRT) Via Thomson Dialog NewsEdge) Feb. 22--A political firestorm escalated Tuesday over plans by a British company to sell its operations at six U.S. seaports to a Dubai government-owned business, despite assertions from security experts that the deal will not alter U.S. security standards at the ports involved, including Miami. In South Florida, U.S. Reps. Ileana Ros-Lehtinen, R-Miami, and Mark Foley, R-West Palm Beach, held separate news conferences urging greater study of the deal. An attorney for Fort Lauderdale's Eller & Co., which is a partner with the British firm at a Miami port terminal, publicized a lawsuit to block the sale. All raised concerns -- as did the governor of New Jersey -- that a foreign government-owned entity running some cargo operations at U.S. ports could jeopardize national security, perhaps making way for terrorists. Yet Florida Gov. Jeb Bush and others questioned those concerns, noting U.S. security laws still apply and at least in Miami, the county remains in charge. "What will be changed if this Dubai company purchased what this Hong Kong-based British company had?" the governor said in Coral Gables. Sparking controversy are plans by a United Arab Emirates company called Dubai Ports World to buy the British Peninsular & Oriental Steam Navigation Co., known as P&O, which runs cargo or cruise terminals at six U.S. seaports in Miami, New York, New Jersey, Baltimore, New Orleans and Philadelphia. At the Port of Miami, P&O owns half of a company that operates the busiest of three cargo terminals. The federal Committee on Foreign Investment in the United States, including representatives of the Treasury, Defense, Homeland Security and other departments, considered the DP World deal and approved it. The sale is set to close March 2 for $6.8 billion. President Bush said Tuesday he would veto any bill to stop the deal. But a host of elected officials, including Foley, now urge a more detailed review -- a full 45-day investigation, voicing security concerns. Foley said he's worried because the United Arab Emirates has been named as a transfer point for nuclear components shipped to Iran, North Korea and Libya. It also was one of only three countries that recognized the Taliban as Afghanistan's legitimate government, and it is discussing plans for free trade with Iran. "If tensions rise even more with Iran, who would Dubai side with?" Foley said at the Port of Miami. But ports and security specialists made clear distinctions between politics and business. They questioned why fast-expanding Dubai Ports World, which is run like a private business and ranks among the world's top ports operators, would endanger billions of dollars in investment and revenues by intentionally hurting U.S. security. Also, they noted the U.S. Coast Guard, together with help from federal, state and local agencies, continues to oversee U.S. port security. "Port management companies operate to ensure continuation of international commerce," said Ron Thomason, senior vice president of SeaSecure LLC consulting firm. "And the company that owns or operates a port is generally not where the threat lies." Port of Miami Director Charles Towsley said, "From what I understand, [this deal] will not change any controlling interest or security operations at the port." Yet lawmakers raised a slew of questions Tuesday -- even whether foreign owned entities should be allowed to run any U.S. port operation. Rep. Clay Shaw, R-Fort Lauderdale, said he would introduce legislation next week aimed to prevent any foreign company -- not only a government owned one -- from controlling U.S. ports. Senate Majority Leader Bill Frist, R-Tenn., said he would propose a bill putting the DP World deal "on hold," unless there's a more through review. Sen. Evan Bayh, D-Ind., suggested legislation requiring the director of national intelligence to approve future ports deals. Meanwhile, a Miami-Dade Circuit Court judge must decide whether to grant an injunction requested Friday by a unit of Eller & Co., Miami-based Continental Stevedoring & Terminals Inc., to block the sale. Continental is a partner in the Port of Miami Terminal Operating Co. or POMTOC, which runs Miami's busiest cargo terminal ands is half-owned by P&O. Attorney Michael Kreitzer said Tuesday that Eller tried to raise concerns over the sale with the federal review committee, but was rebuffed. It worries that Dubai -- while now considered a U.S. ally -- could become a foe later. "Our friends today are not necessarily our friends tomorrow," Kreitzer said. Debate over the sale comes at a time of consolidation among the companies that run terminals and ports vital to the world's fast-growing international trade. At least five foreign companies, including P&O, now operate terminals in the United States, including shipping lines Maersk of Denmark and Yusen Kaisha of Japan. Terminal operators at Port Everglades in Broward County include Mediterranean Shipping Co. of Switzerland, one of the world's largest shipping lines. Staff Writers Sean T. Gardiner and William E. Gibson and Researcher Barbara Hijek contributed to this report, which was supplemented with information from Bloomberg News. |