US opposition to port deal grows

Dubai: More US politicians have joined the clamour against DP World's planned acquisition of commercial operations in key US ports after the $6.8 billion purchase of British-based Peninsular and Oriental Steam Navigation Company (P&O).

The opposition to the deal, which has received Bush administration clearance, is prompting questions about the motives of some US politicians who want to prevent an Arab firm from managing container terminals, citing security concerns.

"The bluster about national security conceals one of the uglier faces of US protectionism the one with the slightly racist tinge," the Financial Times said yesterday.

It said the furore among Washington politicians, including Democrat Senator Hillary Clinton, "says more about" the US Congress than the UAE.

Senate Majority Leader Bill Frist demanded that the deal be put on hold.

New York Governor George Pataki and Maryland Governor Robert Ehrlich said they will bring legal action to block DP World from taking over operations at the ports of Baltimore, Miami, New Jersey, New Orleans, New York and Philadelphia.

The two indicated they may try to cancel lease arrangements at ports in their states because of the DP World takeover, AP reported.

Congressman Mark Foley, a Florida Republican, and Representative Vito Fossella, a New York Republican, were to hold a news conference at the Port of Miami with a spokesman for the shipping firm suing to stop the port operations from being sold to DP World.

Hillary Clinton said last week she planned legislation to ban companies owned or controlled by foreign governments from acquiring US ports business. Currently several foreign companies have container operations at the six ports where DP World would take over P&O's business.

Republican Senator Lindsay Graham of South Carolina has said the US government approval was "unbelievably tone deaf politically." Democratic Senator Charles Schumer and Republican Congressman Peter King said they would push the legislation to block the deal.

Speaking to Gulf News yesterday, Tim Power of Drewry Shipping Consultants dismissed the security argument. "There are already several foreign companies managing terminals at US ports."

"In practical terms nothing is going to change at US ports in day-to-day operations. DP World's taking over P&O does not mean a lot of people are suddenly going from Dubai to the US to manage the ports."

The Financial Times urged the senators to "do the math" and see the benefits that DP World will bring to the US economy.

"Leading Dubai companies such as DP World bring with them certain advantages. They habitually: spend money to make money; headhunt the best professional [in DP World that includes top Americans]; and produce high rates of growth."