Question Details	Asked By	Asked On
U.S. ports in the hands of a state-owned Arab company	Dark_Crow	02/21/06
"It is not as if they will fire all the unionized workers at P&O's U.S. ports and replace them with Arabs." "Powerful Washington lawmakers citing security concerns on Tuesday pushed emergency legislation to block a controversial deal that would place management of six major U.S. ports in the hands of a state-owned Arab company." President Bush has stated we (America) are going forward and, "I will veto any legislation that stops us from going forward. I am not up to date on this matter. Can anyone tell me why we would allow a foreign Corporation to manage our ports? http://today.reuters.com/news/newsArticle.aspx?type=topNews&storyID=2006-02-21T184041Z_01_N19219437_RTRUKOC_0_US-SECURITY-PORTS.xml&archived=False
Answered By		Answered On
captainoutrageous		02/22/06
This a new one on me as well. It causes me considerable concern that the US Executive Branch is even considering such a move. I did locate the following article re the Dubai company from last year: PR Newswire, Feb 22, 2005 Dubai Ports International Completes Acquisition Of CSX World Terminals. * DPI Is Now One Of The Top 6 Port Operators In The World * DPI Has Operations That Span The Globe Adding Asia And Latin America To Existing Facilities In Middle East, Europe, Africa And India * DPI Has Acquired Future Development Projects Including Pusan Newport In South Korea * DPI Able To Service International Customers With A Global Network Dubai Ports International ("DPI"), one of the world's leading port operators, today announces that it has completed the acquisition of CSX World Terminals ("CSX WT" or "the Company"), the international terminal business of CSX Corporation , for closing cash consideration of USD 1.142 billion, subject to final working capital and long-term debt adjustments. The conclusion of this transaction means that DPI is now one of the world's top 6 operators. DPI currently has extensive operations in the Middle East, Africa, Europe and India. The acquisition of CSX WT gives DPI a strong presence in Asia for the first time, including CT3 and CT8W in Hong Kong, Tianjin and Yantai in China as well as operations in Australia, Germany, Dominican Republic and Venezuela. DPI now has a truly international network with the capacity to service the needs of customers across the globe. The combined portfolio consists of interests in 15 operational terminals in 13 locations with a combined capacity in excess of 24 million TEUs. Importantly for the future development and expansion of the network, DPI has acquired the Company's strong pipeline of development projects. In particular, CSX WT has a 25% interest in, and will be the operator of, Pusan Newport, South Korea, a 9-berth facility with a capacity of 5.5 million teus that is currently under development and is expected to commence operations in 2006. DPI has also acquired interests in logistics businesses in Hong Kong and China, notably ATL, the market leading logistics operator based at Kwai Chung, Hong Kong. On 30 December 2004, prior to the completion of this transaction, CSX WT announced that it had raised its stake in Asia Container Terminals Ltd ("ACT") to 68.6% giving the Group a majority share in this important operation. ACT is the owner and operator of the premier terminal CT8W in Hong Kong. The transaction was financed from a committed loan facility arranged and underwritten by Deutsche Bank AG on 16 December 2004 for USD 1.45 billion. Deutsche Bank acted as financial adviser to Dubai Ports International and Citigroup Global Markets acted as financial adviser to CSX with respect to the transaction. Sullivan & Cromwell LLP acted as legal counsel to DPI and Arnold & Porter LLP represented CSX. Sultan Ahmed Bin Sulayem, Executive Chairman, Dubai Ports, commented: "I am delighted that the transaction is completed. The acquisition of CSX WT complements DPI's existing network, giving us a truly global footprint that will benefit our customers and partners around the world. It will allow DPI to participate in the long-term growth of the global transportation and logistics industry and gives us access to new growth markets in Asia and Latin America. "I would like to take this opportunity to welcome CSX WT's employees into the DPI family. We are all looking forward to working with you to build and develop this business." Mohammed Sharaf, Managing Director, Dubai Ports International, said: "The addition of such strong operations in Asia means that we can look forward to further enhancing our relationships with existing DPI customers and extending our high service levels to new ones. We are proud of the relationships we have with our international customers and want to serve them at an international level. "The skills that have made the Dubai Ports such a success story will be transferred to the newly-acquired businesses. Over the longer-term we will seek to improve the breadth and quality of the services available across our network. As always, we are focused on providing our customers with a level of service second to none." Peter Wong, Vice President China, CSX World Terminals said: "I am very pleased that the acquisition has been completed. DPI has an excellent reputation for the successful management and growth of port operations. It is clear that the combination of two such complementary operations is great news for our customers and employees." Rufin Mak, Vice President Hong Kong, CSX World Terminals said: "This is an exciting time for the World Terminals business and we are looking forward to working with DPI to create an even more successful company."

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