Dubai firm would be 3rd-largest ports operator

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.

Britain’s Peninsular and Oriental Steam Navigation Co., also known as P&O;, provides stevedoring, freight-loading and -unloading, and terminal-operating services at ports in 18 countries where it operates. The company also operates some ferry services.

In addition to the U.S. contracts, the P&O; ports acquisition would cover ports in Vancouver, British Columbia; Buenos Aires; and locations in Britain, France and several Asian countries.

P&O; hires the terminal work force and ensures that cargo is delivered or shipped at ports.

Port operators “just make sure every ship and every truck is unloaded,” said Mike Bowden, president of International Longshoremen’s Association Local 1459 in Mobile, Ala.

Some of the work involves scheduling trains or trucks to pick up and deliver shipments. The operator also allocates storage space for cargo at the ports.

Story Continues →