DUBAI, 27 February 2006 — Dubai Ports World, which is caught in the eye of a political storm in the United States, is ready to wait for a 45-day security review before taking control of six US ports.
DPW said on Thursday it was postponing the takeover of the US ports under an acquisition agreement it has signed with Britain’s P&O shipping and port operations giant but was going ahead with the non-US segment of the $6.8 billion deal. It did not give a timeframe for the postponement.
The deal, which involves a total of 18 P&O-run ports around the world, is under a court challenge in the United States as well as in Britain. A British court will review the deal today. “Dubai Ports World is ready to defer taking over the operations at the US ports for 45 days to allow time for a security review,” Reuters quoted a source close to DPW as saying yesterday.
That timeframe is compatible with a compromise being suggested by Republican leaders in order to allay fears expressed by members of Congress, who content that the expected DPW takeover of the six ports would expose the United States to security threats.
In addition to the request for a 45-day examination, DP World is promising to create a US subsidiary that would operate independently of executives in Dubai until May.
During the Bush administration’s investigation, DP World said a London-based executive who is a British citizen would have authority over the company’s operations at ports in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.
Also, an American citizen will serve as chief security officer during this period, the company said.
“We hope that voluntarily agreeing to further scrutiny demonstrates our commitment to our long-standing relationship with the United States,” said Edward H. Bilkey, the company’s chief operating officer.
Part of the company’s offer was disclosed by Sen. John Warner, the chairman of the Senate Armed Services Committee, during an appearance on NBC’s “Meet the Press.”
The company said its proposals would remain in effect until May 1 or the conclusion of the review, whichever comes first.
A leading senator said DP World sent the offer to the White House and members of Congress yesterday.
Sen. Warner praised the company for its “excellent record” on port security and international operations. Supporters of the deal have said the UAE is an important US military ally in the Middle East and in the fight against terrorism.
Opponents of the $6.8 billion takeover deal say that at least two of the 9/11 suicide hijackers had links with the United Arab Emirates and they had also received funding for the 2001 attacks through the country.
They also cite the UAE’s recognition of the now ousted Taleban regime of Afghanistan in the 90s as another reason for opposing the deal.
The White House has stood firmly behind the deal saying it would go ahead and there is no question of a reconsideration of the deal.
President George W Bush has vowed to veto any legislation to block the deal and says the UAE is a partner in combating terrorism. Dubai Ports World, an arm of the government of Dubai, is operating a new oil terminal used by the US Navy in Djibouti, a point emphasized by DPW Chairman Sultan Ahmed Bin Sulayem to highlight the company’s record on security.
Senate Majority Leader Bill Frist and other congressional leaders, DPW and Bush administration officials are reportedly working on a compromise intended to derail plans by Republicans and Democrats for legislation next week that would force a new investigation of security issues relating to the deal.
