Port Flap, What Is Really Being Proposed?
Are we planning to allow a UAE owned company to run American ports or simply conduct port operations at leased terminals within American ports?
In an earlier post, I clarified the issue as explained to me by a contact who is involved in port manangement:
Ports are owned and managed by Public Port Authorities. Within a port facility are terminals with cranes, warehouses and offices. The Public Port Authority leases out the various properties within the port to operators who load, unload, store and forward goods.
Their lease covers the use of the portion of the facility they pay to use, and access to and from it. They do not gain ownership of, responsibility for security, or control of the port.
A UAE owned company bought out a British based company and assumed their leases of one terminal in six different ports. Ownership and management of the ports remain with the Public Port Authorities. Security remains in the hands of the US Coast Guard and the Dept. of Homeland Security. (Source)
Then in an update I explained that the way it was being reported, you’d think the UAE company, Dubai Ports World was taking over entire port operations. Looking at various news outlets is adding to the confusion but these excerpts seem to shed some light on the situation.
At Foxnews.com (emphasis added):
At a briefing of the Senate Armed Services Committee, debate over the deal turned from whether it is a good idea to let a UAE-owned firm run freight terminals inside U.S. ports…..Lawmakers continue to argue that allowing UAE-owned Dubai Ports World to buy the London-based Peninsular and Oriental Steam Navigation Co., which currently operates the port terminals in question, would threaten U.S. port security.
From CNN (emphasis added):
Foreign-owned companies operate many ports in the United States. For example, companies from China, Denmark, Japan, Singapore and Taiwan run docks in Los Angeles, California.
From the NY Times (emphasis added):
The Dubai company at the center of a political furor over its plans to take over some terminal operations at six American ports said Thursday night that it planned to close the deal next week….
It appears there is truth to the fact that these are leases of terminals within the ports, not the turning over of entire ports to a foreign owned company. While there is still cause for concern, the near hysterical reaction and level of political grandstanding going on do not appear to fit the situation.
Cross-posted at SactoDan.com
February 24th, 2006 at 12:24 pm
[...] More from California Conservative, who notes the actual deal is not as sweeping as it’s been portrayed. And more from Captain’s Quarters and Irish Pennants. posted by: The Editors @ 11:31 am February 24, 2006 [...]