March 08, 2006
Still no correction from Homeland Security
The mainstream media finally seems to be catching on to the fact that the Dubai Ports World acquisition of the British port services company P&O would involve not six but over 20 U.S. ports. It's curious that no one has yet followed up on the fact that the reason the original number was reported as six is because that's the information that was given out by the Department of Homeland Security.
DP World will not, nor will any other terminal operator, control, operate or manage any United States port. DP World will only operate and manage specific, individual terminals located within six ports.
In the comments on my original post, Econbrowser reader Movie Guy extensively documented that the acquisition involved not six but rather 21 separate ports that you can find on this map from the P&O website. For example, if you click on that map on Gulfport, Mississippi, you find the following details about P&O operations there:
In Gulfport, P&O Ports performs stevedoring and terminal operations for Chiquita and Crowley containers, which total about 75,000 units annually. Approximately 40,000 container moves carried by Crowley are on RoRo vessels plying the Caribbean.
P&O picture of Gulfport, MS
Two shipside freezers operated by P&O Ports accommodate poultry, poultry parts and other frozen cargoes and account for about 200,000 tons of export cargoes annually.
Gulfport, Mississippi is one of P&O Ports' most southern ports. Located on the U.S. Gulf coast, the Port consists of nine berths ranging from 525 to 750 ft. in length. All berths at the Port of Gulfport are multi-use, multi-purpose but are primarily assigned as follows: three container berths, two break bulk/refrigerated cargo berths, and four general cargo berths suitable for break bulk, neo-bulk and project cargo. Container operations are supported with ships gear.
The Port Authority's 100,000 sq. ft. freezer facility is located on the Port's West Terminal and is operated by P&O Ports. The facility includes a 3,000 sq. ft. blast freeze capacity, an ammonia-based cooling system capable of maintaining subzero temperatures, and available on-site USDA quality control inspection services with computerized reporting.
Both Ben Muse and Econbrowser had follow-up posts asking what was the thinking behind the original Homeland Security fact sheet. So far, no one else in either the government, blogosphere, or the mainstream media seems to have taken up that question.
So now I have two questions:
Posted by James Hamilton at March 8, 2006 10:36 AMdigg this | reddit
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» Countdown to controversy: Dubai Ports World from Ben Muse
How did the Dubai Ports World controversy develop? These notes cover the review process from October 17, when Dubai Ports World and PO notified the Committee on Foreign Investment in the U.S. of their intended deal, to their request for [Read More]
Tracked on March 8, 2006 01:47 PM
22 U.S. ports, including the Port of Tampa.
23 U.S. ports if one separates Port Jersey from Port Newark.
Until the Port Authority of the Port of Tampa states otherwise, P&O/DP World will be the operator and sole contender to secure long term contracts to operate 2 if not three terminals, including the large container terminal.
63 U.S. terminal operations are involved in one form or another; 14 cruise vessel terminal operations are included. 49 cargo terminal operations.
Posted by: Movie Guy at March 8, 2006 10:57 AM
Posted by: Movie Guy at March 8, 2006 12:10 PM
The DP World acquisition involves P&O Ports North America operations and activities at 22 U.S. ports, and 63 terminals at a minimum.
1. The UAE DP World acquisition of P&O and P&O Ports North America involves taking control of P&O Ports North America operations and activities at 22 U.S. ports, not 6 U.S. ports.
2. P&O cargo terminal operations are conducted at 49 U.S. terminals, at a minimum. An additional 6-8 terminals and other facilities remain in question.
3. P&O container operations are conducted at 15 U.S. ports. (included in the 49 terminals figure above)
4. P&O RoRo (roll on, roll off ships) operations are conducted at 13 U.S. ports. (included in the 49 terminals figure above) P&O operates more than one RoRo terminal at some ports. Port of Virginia is such an example.
5. P&O cruise vessel terminals operations are conducted at 8 U.S. ports, with the possibility of such operations at another port thus far not verified. A minimum of 3 cruise vessel terminals are under the control and management of P&O. There are 7 cruise vessel terminals at the Port of Miami. The total number of cruise vessel terminals is 14, at a minimum.
6. P&O full operational control of cargo terminals involves 8-9 U.S. ports, at a minimum. 12-15 cargo terminals.
7. P&O has current operations and activities at the following 22 U.S. ports:
Port of Portland, Maine (formal name)
Port of Boston (Massachusetts)
Port of Davisville, Rhode Island
Port of New York
Port Jersey & Port Newark (New Jersey)
Port of Philadelphia (Pennsylvania)
Port of Camden, New Jersey
Port of Wilmington, Delaware
Port of Baltimore (Maryland)
Port of Virginia (formal name) (Norfolk, Virginia)
Port of Miami (Florida)
Port of Tampa (Florida)
Port of Gulfport (Mississippi)
Port of New Orleans (Louisiana)
Port of Baton Rouge (Louisiana)
Port of Lake Charles (Louisiana)
Port of Beaumont (Texas)
Port of Port Arthur (Texas)
Port of Galveston (Texas)
Port of Houston (Texas)
Port of Freeport (Texas)
Port of Corpus Christi (Texas)
Posted by: Movie Guy at March 8, 2006 12:20 PM
Hey they are our allies... Right? Right?
Of course that depends on how you define 'they'... the family that 'owns' UAE & as a result DPW (FOBs - Friends of Bush)... or the people the Emirates employ to actually do the work & where that work is actually done. No chance of any of it being 'off-shored' to save money... Right? Right? No chance of any Al Qaeda operatives burrowing in 'mole-like' into the DPW organization... Right? Right?
Everyone now just put your heads down on your desk... its nappy time.
Posted by: dryfly at March 8, 2006 01:29 PM
How does the world work? We all scurry around worrying about the debt, the deficit, and morning coffee. Meanwhile, above our heads and out of sight, things happen.
Every now and then, a simple little fact rears its embarrassed head: 22 ports, not 6. What to make of this? A counting error on the part of the CFIUS review? A typing error by a half-blind data entry clerk who wrote the DHS fact sheet? Naw. I don’t think so. And our wonderful media continues blithely on its way: Six ports…six ports.
It all reminds me of Stoppard’s play Rosencrantz and Guildenstern: Hamlet told from the point of view of two minor, very silly characters who end up dead, and have no idea of exactly what happened.
Now, I am not saying we will end up dead, but what I am saying is that we, like Rosencrantz and Guildenstern, have not a clue as to how the inner circles work.
Oh, to be a fly on the DHS wall.
Posted by: Stormy at March 8, 2006 03:08 PM
Your ignorance is showing. There is no family that owns the UAE.
Second point: why do you think it would be easier for an al Qaeda mole to burrow into DPW than any other firm?
Thirdly, you can't "offshore" the unloading of ships in the US because it has to be done in the US. If you "offshore" it to, say, India, then the cargo gets unloaded in India. Which is rather inconvenient for the people who shipped it to the US. I think you mean "will they hire foreigners who will work for less", then the question to be asked is: why would any firm not do this if they could?
[edited by JDH]
Posted by: bartman at March 9, 2006 12:32 AM
Tell me, clever one, who owns DP World? How many board members does it have? Can a U.S. citizen only majority stock in a Dubai company?
When you finally understand the difference between a private corporation and a government owned one, let us know.
And, while your at it, research how many ports are involved.
Posted by: Stormy at March 9, 2006 07:40 AM
And, of course, no one has touched the David Sanborn issue--just how he, senior DP World official, is now nominated to head the Maritime Administration.
McClellan has personal assurances from Dave that there is no quid pro quo. Serendipity, serendipity...what webs you weave. Nothing like a personal assurance.
I want to see a Congressman buy this one. Actually, I don't; but I expect to.
Posted by: Stormy at March 9, 2006 10:34 AM
UPDATE: DP World folded
DP World will sell off P&O Ports North America assets and operations in the United States of America to another investor.
Posted by: Movie Guy at March 9, 2006 11:12 AM
DP World to Transfer Control of U.S. Ports to U.S. `Entity'
"March 9 (Bloomberg) -- Dubai-owned DP World, facing congressional opposition to its operation of six U.S. ports, will transfer its ownership of those terminals to a U.S. entity, Virginia Senator John Warner said."
"Warner, reading a statement from Edward Bilkey, the chief operating officer of the company, said the sale was intended to preserve "the strong relationship between the United Arab Emirates and the United States.""
"DP World, which completed its acquisition of U.K.-based Peninsular & Oriental Steam Navigation Co., said it "had decided to transfer fully the U.S. operation of P&O Ports North America to a United States entity," Warner said, reading from Bilkey's statement."
"The company planned to make the transfer "in an orderly fashion" so it "will not suffer economic loss," the statement said."
"The decision was announced as the congressional Republicans told President George W. Bush today that Congress was prepared to pass legislation to prevent the company from operating the U.S. port terminals, a congressional aide said."
Posted by: Movie Guy at March 9, 2006 11:20 AM
Here's the first print media news report.
AFP hit the newswires with this:
09/03/2006 18:59 WASHINGTON, March 9 (AFP)
DP World to transfer US port activities to US entity
The United Arab Emirates-owned Dubai Ports World announced Thursday that it would transfer US port operations to "a United States entity" to preserve bilateral relations, according to a DP World statement read by US Senator John Warner.
"Because of the strong relations between the United Arab Emirates and the United States and to preserve that relationship, DP World has decided to transfer fully the US operations of P and O Ports North America to a United States entity," Warner said, reading the statement on the Senate floor.
Warner, the Republican chairman of the Senate Armed Services Committee, said he had received the statement from DP World's chief operating officer Edward Bilkey.
Posted by: Movie Guy at March 9, 2006 11:23 AM
WASHINGTON (Reuters) - State-owned Arab company Dubai Ports World confirms U.S. ports transfer plan
Thu Mar 9, 2006 7:21 PM GMT
Dubai Ports World confirmed on Thursday an announcement by U.S. Sen. John Warner that it would transfer operation of U.S. ports it has acquired from P & O.
"Sen. Warner has made our statement for us. His announcements says everything we have to say at this point," a spokesman said.
Posted by: Movie Guy at March 9, 2006 11:32 AM
Stormy: your questions pretty much define the term "non sequitur". They are irrelevant to my point, which was the addressing of demonstrably false points in another person's post.
Anyway, I'm sure you're happy now that [DP World is] pulling out.
[edited by JDH in hopes of helping to promote civil discussion]
Posted by: bartman at March 9, 2006 12:16 PM
DP WORLD PRESS STATEMENT - Disposition of P&O Ports North America Operations and Assets
Forwarded via the public relations contract firm handling this issue.
From: Operations [mailto:Operations@bell-pottinger.co.uk]
Sent: Thursday, March 09, 2006 2:16 PM
Subject: DPW Press Statement
Attached, please find DPW Press Statement as of 2:00 PM on March 9, 2006.
Print lines as shown in the original PDF press statement released by Bell-Pottinger:
March 9, 2006
By, H. EDWARD BILKEY, CHIEF OPERATING OFFICER, DP WORLD
Because of the strong relationship between the United Arab Emirates and the United
States and to perserve this relationship, His Highness Sheikh Mohammed Bin Rashid
Al Makotum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has
decided that DP World will do the following. DP World will transfer fully the U.S.
operations and P&O Ports North America, Inc. to a United States entity. This decision
is based on an understanding that DP World will have time to effect the transfer in an
orderly fashion and that DP World will not suffer economic loss. We look forward to
working with the Department of Treasury to implement this decision.
For further information please contact:
Posted by: Movie Guy at March 9, 2006 02:29 PM
Actually, I wanted to understand why DHS misrepresented the facts and why that misrepresentation was never revealed in the media and in Congressional testimony.
Certainly the true scope of the deal was known from the beginning. Even the media is reluctant to state it clearly--or to do any serious investigation. And the facts of the case are easily discovered, as Movie Guy has shown.
That the deal was scuttled so quickly without DHS being called to account disturbs me. I would have preferred full disclosure of the facts and why they were misrepresented. I would have preferred the process to play out longer, regardless of what happened.
I have the feeling—and it is only a feeling—that there is much more to all this than we will be allowed to see, by either Congress or the White House.
It will be interesting when Dave Sanborn goes before Congress.
Posted by: Stormy at March 9, 2006 07:46 PM
The real lesson here is that the UAE needs an image makeover. The United Arab Emirates can start by changing its name. An emirate is basically a sheikhdom. So I propose as their new name, United Sheikhdoms of Arabia.
How could anyone oppose having closer ties with the good ol' USA?
Posted by: Hal at March 10, 2006 10:17 AM
It is amazing to see the new world hypocrisy, in one hands the so called the western world pressurizes whole world to open up, on the other hand they close their own market to rest of the world except for none Muslims? Why this decimation while 80% of USA port are owned by others/ Do the owner of this NWO must not be from Muslim World? I thought I have to say some thing, I do not understand what happening to this world, why every one crying wolf? Why we all can not see the real enemy? why we can not see the major wars of last century cried out and killed over 100 millions (WWI and WWII & civil Wars). These threat to humanity didn't come from Islam but came from so called the democratic systems ( not the great people of Europe or America but their hidden masters, GWB was very honest when he stated just after the synthetic 911 attack or the false flanging,: yes I have a hidden government. Any one of us asked him who is his masters, there our problems lie sirs)? Just read this article for yr Chilled sake and tell me who the real threat is? An excerpt from Ian Buckley's, latest article "Why is Islam so feared and derided today?" states: "Muslims will have to face the fact that they are hated, not for their vices, but for their virtues. The normal mind to a large extent rebels against such a novel thought. As with the true story of what really happened on September 11th, the average person has a mental block when confronted by the perverse, amoral wickedness implied by 'hatred of virtues'." And what is virtue: moral excellence, goodness, righteousness, ethical principles, and admirable qualities. Would these definitions of virtue be seen as fundamental to our very well being? If so, then I guess, Muslims may justly be called Fundamentalists. And the opposite of virtue or as Mr. Buckley so aptly put it, "hatred of virtues", could these be described as: pride, envy, gluttony, lust, anger, greed, and sloth? Are not these sins more apt to be associated with our culture than theirs? And if so, than do Muslims terrify us as they live a life of virtue? Is that what we mean by terrorists? Do we project unto them our fearful demons? And as the disease of narcissism progresses to our eventual unraveling, do we hope and secretly pray that the proverb of 'Do unto others as you wish them to do unto you', will never apply to us? The drums of our delusion as Masters of the Universe dissolve into suicide, homelessness, child prostitution, and addiction. We sell an empty bag of tricks, and others aren't buying it. It was never about land, or even oil, was it? It was about looking at our brother in the eye and knowing that we aren't even the lesser of two evils, we have reached first place. The full article is: The Shadow Puppet's Master ??? Oct. 31st, 2005 by Barbra-renee Brighenti http://www.crescentandcross.com/index.php?page=articles&author=barbra-renee_brighenti. When Europe wake up and bark on the right tree? God help Europe from the Satins, God bless you all.
Posted by: ams alzidgali at March 31, 2006 06:14 AM