US firm sues to block foreign port takeover

Firm sues to block foreign port takeover

Quote:

WASHINGTON -- A company at the Port of Miami has sued to block the takeover of shipping operations there by a state-owned business in the United Arab Emirates. It is the first American courtroom effort to capsize a $6.8 billion sale already embroiled in a national debate over security risks at six major U.S. ports affected by the deal.
. . .
The Miami subsidiary, Continental Stevedoring & Terminals Inc., said the sale to Dubai was prohibited under its partnership agreement with the British firm and "may endanger the national security of the United States." It asked a judge to block the takeover and said it does not believe the company, Florida or the U.S. government can ensure Dubai Ports World's compliance with American security rules.
. . .
The lawsuit represents the earliest skirmish over lucrative contracts among the six major American ports where Peninsular and Oriental runs major commercial operations: New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.
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The sale, already approved by the Bush administration, has drawn escalating criticism by lawmakers in Washington who maintain the United Arab Emirates is not consistent in its support of U.S. terrorism-fighting efforts.
. . .
Caught by surprise over the breadth of concerns expressed in the United States, Dubai is cautiously organizing its response. The company quietly dispatched advisers to reassure port officials along the East Coast, and its chief operating officer - internationally respected American shipping executive Edward "Ted" H. Bilkey - is expected to travel to Washington this week for meetings on Capitol Hill and elsewhere.

The Bush administration in recent days has defended its approval of the sale, and has resisted demands by Congress to reconsider.

At The Emirates Economist I have more to say here and here. The scope of the blogosphere's attention is shown in this graphic.

My prediction: If nothing else, the attention the deal is receiving in the US will greatly increase what people there know about the UAE. It is common for American to confuse the UAE with the UAR, or to assume it's part of the KSA. The present kerfuffle may reduce those misconceptions, but at the same time create a distorted understanding. There is a world-stage public-relations silverlining if and only the UAE is proactive and forthcoming.

Dubai is also receiving attention at The National Standard in relation to a financial prize to Kofi Annan.

UPDATE: Starling Hunter provides a fair and balanced roundup of the ports story. He concludes

My other hunch is that someone is going to explain it all to the lawmakers pretty soon and that this story will blow over rather quickly. This is not the stuff of which a "gritty film-noir" or even a Michael Moore documentary is made.