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Ports Are Run By Many

Posted on: Thursday, 9 March 2006, 21:00 CST

By DAVID B. CARUSO Associated Press writer

The ship terminals that ring New York Harbor have been offered as Exhibit A by critics who say it would be crazy to allow a United Arab Emirates company to play a major role in operating U.S. ports. No other spot on the East Coast handles so much cargo, from so many nations, so close to America's No. 1 terrorist target.

But a closer look at on-the-ground operations reveals limits on the influence the Arab state-owned company, Dubai Ports World, would gain over ports in New York, New Jersey and elsewhere if the deal goes through.

On much of the East Coast, the company wouldn't even control the selection of laborers; the work force would be supplied by the International Longshoremen's Association.

The company wouldn't be in charge of port security, which is handled by federal border agents, the Coast Guard, port authorities and police agencies.

And in the case of operations like the Port Newark Container Terminal -- a facility five miles from the Statue of Liberty cited frequently as among the most sensitive operations included in the deal -- DP World would only be a 50 percent shareholder.

Its equal partner, A.P. Moller-Maersk, is based in Denmark -- the country recently assailed by Islamic extremists over cartoons in a Danish newspaper.

That a Danish company could have at least as much say in the running of the terminal underscores one of the realities of U.S. port operations.

Most are controlled at the corporate level by international partnerships, but are dominated on the ground by Americans who would likely stay in place if DP World's takeover of the British company Peninsular & Oriental Ports North America is allowed to go ahead.

"This company would not control the ports, they would not operate the port alone," said Thomas De Maria, executive director of the Waterfront Commission of New York Harbor, an agency set up to combat the influence of organized crime on the docks.

"There are a lot of people watching," he said.

Opponents of the DP World deal have said security at U.S. ports is thin enough that an ill-intentioned terminal operator could help bring illicit cargo, terrorist operatives or weapons into the country without notice.

However, chain-link fence, barbed wire and cameras guard the perimeter of the 96-acre Tioga Marine complex. Terminal manager Patrick Kryszczak said 98 percent of the containers unloaded are opened and inspected by federal customs agents.

DP World is owned by the emirate of Dubai, the outwardly pro- Western port city that is emerging as a tourist playground but also has been assailed as a hub of smuggling and shady banking transactions.

Comments made Sunday regarding the deal allowing a United Arab Emirates-based company, DP World, to take over major operations at six U.S. ports:

"The president is confident that when Congress really understands the transaction, they will conclude, as he did, that it's the right thing to do."

-- White House national security adviser Stephen Hadley.

"This process has been flawed from the beginning, and it needs to be fixed."

-- Sen. Lindsey Graham, R-S.C.

"Whatever happens in this United Arab Emirates deal, if we get more focus on port security, which some of us have been trying to do in the Congress for years, some good will come out of this."

-- Sen. Charles Schumer, D-N.Y.

"I think that near-hysteria about this is not warranted, particularly in light of the other major crises that we are facing throughout the world. the Iranian nuclear weapons issue is the greatest single threat we have faced since the end of the Cold War."

-- Sen. John McCain, R-Ariz.

Some questions and answers about the port deal, U.S. security and the desert nation at the heart of the roiling waters.

Why did this stir up such a fuss?

Under the arrangement, UAE-owned Dubai Ports World would control significant operations at six U.S. ports. Some fear that having a company controlled by an Arab state responsible for port operations would open opportunities for terrorists.

How secure are U.S. ports?

After the 2001, Congress required improved port security. A law signed by Bush in 2002 set a July 2004 deadline for ships and ports to tighten security amid fears that terrorists might smuggle nuclear weapons in a cargo container. The Coast Guard largely accomplished the undertaking. But much remains undone. Still overdue are standards for container locks and seals and identification cards for port workers, a report on cargo container security and a national security plan for marine transportation.

What, and where, is the United Arab Emirates?

It is an oil-rich, desert nation on the Persian Gulf between Oman and Saudi Arabia, a little smaller than Maine. It is a loose federation of seven emirates -- each with its own ruler -- and about 3.4 million people, mostly foreigners. In the flashy emirate of Dubai, foreigners make up more than 80 percent of the city's 1.5 million residents. Foreign laborers tend to live in squalid desert camps while wealthy expatriates enjoy some of the world's most luxurious accommodations. The vast majority of the population is Muslim.

Where does the UAE fit in the war on terrorism?

Members of Congress who are trying to sink the deal cite the UAE's history as an operational and financial base for the hijackers who attacked New York and Washington on Sept. 11, 2001. Furthermore, the United States raised concerns with the UAE several years ago about possible ties between officials and Osama bin Laden, according to the report by the independent commission that investigated 9/11. The UAE was one of only three countries that recognized the Taliban government in Afghanistan before its 2001 overthrow by U.S.-led forces.

On the other hand, Bush praises the UAE as a valuable ally in the anti-terrorism campaign. U.S. forces use UAE seaports and airfields for logistics support and pilot training, and U-2 spy planes and Global Hawk unmanned surveillance aircraft have been based at al- Dhafra air base.

Moreover, the Clinton administration agreed in 2000 to sell the UAE 80 of the most sophisticated versions of the F-16 fighter jet.

Source: Columbian

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