Dubai firm would be 3rd-largest ports operator

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The proposed acquisition of British company Peninsular and Oriental Steam Navigation Co. by Dubai Ports World would turn the Middle Eastern company into the world's third-largest ports operator.

The $6.8 billion deal, which is scheduled to close March 2, would allow the Dubai-government-owned company to add six major U.S. ports to the 22 marine terminals it already operates in 15 countries, including China, India, Venezuela and Australia.

Dubai Ports World (DPW) -- which also has trucking operations, freight transportation logistics and airport operations -- is owned by a member of the United Arab Emirates, whose oil-rich nations have been using their wealth to expand other business enterprises.

Unless lawmakers citing security concerns can scuttle the Bush administration's port deal, DPW will join a growing list of foreign-owned entities that are heavily involved in port operations across the U.S.

At least 90 terminals at major U.S. ports are operated by foreign governments and businesses, which also have participated in efforts to establish new cargo security standards, according to a shipping-industry source.

The governments of China and Singapore own companies that hold terminal leases along the West Coast. Japanese businesses control dozens of terminals nationwide, and a Danish company runs nearly a dozen major ports on the East Coast.

Homeland Security officials yesterday scurried to compile a list of all terminal operators in 361 U.S. ports, which was not available by press time. The Washington Times has determined that at least 90 terminals are operated by seven foreign companies.

"Every shipping company wants to operate their own terminals; it's a sweet deal to give their shippers the best deal possible," the source said.

"I don't think anyone wants to get rid of foreign businesses, but giving terminals to foreign governments is different."

U.S. companies continue to operate the majority of terminals, but no U.S. company made a bid on the purchase of Peninsular and Oriental Steam Navigation Co.