Even on first review, the sale of the British owned North American unit of Peninsular & Oriental Steam Navigation Co. to a government-run company in the U.A.E. is troubling considering that nation's worrisome record of fighting terrorism. Have we forgotten that, according to the FBI, Dubai was the base for much of the terrorist planning and operations for the attacks in New York and Washington on September 11, 2001? Most of the financing for the September 11 operations are said to have originated in Dubai.
Of course, we can't help but notice that England also seems to be home to numerous terrorist cells as evidenced by last year's attacks in London and no one objected to P&O's ownership.
The U.S. ports which are involved in this sale include terminal operations in Baltimore, Miami, New Jersey (Camden, Elizabeth and Newark), New Orleans, New York, Philadelphia, and Wilmington Delaware. In most cases Dubai Ports World would own a 50% stake in these operations.
Locally Delaware River Stevedores which operates in Camden, Philadelphia and Wilmington would be half owned by Stevedoring Services of America Marine based in Seattle and the new owner, Dubai Ports World. Even should the sale go through, it is unlikely that any foreign workers would be hired in any of these ports and that actual operations would change to any degree at all. The International Longshoremen's Association would make sure of that.
In addition in Philadelphia this would affect only the Tioga Marine Terminal in Philadelphia's Port Richmond section. The Packer Avenue Terminal in South Philadelphia is operated by a competitor of Delaware River Stevedores, the New Jersey-based Holt Group.
Why then is this suddenly such a big issue? Do people really believe that we'll have terrorists infiltrating our port operations? That is probably no more or less likely than as is currently the situation. The U.S. Coast Guard controls the physical security of our ports and the U.S. Customs Service controls container security. It has long been known that port security has received the least increase in funding after September 11.
The answer to why this is a big issue is really two-fold - perception and politics.
Perception
We were all quite content with the status quo as long as no one brought it up. Few realized that so many port terminal operations were foreign owned. Now that it has come to our attention it bothers us that such an important aspect of U.S. commerce is controlled by companies abroad. We just don't like foreign companies, much less foreign nations owning important U.S. assets.Politics
Until now all polls have shown that the President and the Republican Party have owned the issue of who is better at protecting America. That issue above all other probably won Bush reelection in 2004. Naturally then most Democrats have jumped at the opportunity to condemn this sale and the President's promise to veto any legislation that would bar it.Not wanting the issue to be taken over by the Democrats numerous Republican members of the House and Senate have jumped onboard condemning the sale. Several of the most outspoken Republican critics clearly have their own personal motives. It's well known that Senate Republican leader Bill Frist and Governor George Pataki of New York are mulling runs for President in 2008. Maryland Republican Governor Robert L. Ehrlich, Jr. is facing a serious challenge for reelection in a heavily Democratic state this fall.
In fact, despite their claims that their opposition is based on national security issues, the reality is that politics is really what is driving this issue.
What's Your Opinion?
Should Congress act to bar the sale of U.S. port operations to Dubai Ports World?
Yes
No
It Doesn't Matter to Me
Should Congress act to bar the sale of U.S. port operations to any foreign nation?
Yes
No
It Doesn't Matter to Me
Who is better defending the U.S. against foreign terrorists?
President
Congress
They both stink
Which Party do You Trust More to Oversee National Security?
Democrats
Republicans
They both stink