Say Anything Blog

AP - Details of the surprise deal were still being worked out. The company said its decision was "based on an understanding that DP World will have time to affect the transfer in an orderly fashion and that DP World will not suffer economic loss."

DP World finalized its $6.8 billion purchase earlier Thursday of Peninsular & Oriental Steam Navigation Co., the British firm that through a U.S. subsidiary runs important operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. It also plays a lesser role in dockside activities at 16 other American ports.

A leading critic of the ports deal, Rep. Peter King, R-N.Y., applauded the decision. He predicted that if the company's announcement were to represent a total divestiture, then lawmakers would be appeased.

"It would have to be an American company with no links to DP World, and that would be a tremendous victory and very gratifying," said King, chairman of the House Homeland Security Committee.

Sen. John Warner, chairman of the Armed Services Committee, took the Senate floor to read to colleagues a company press release disclosing DP World's new stance.

"Because of the strong relationship between the United Arab Emirates and the United States and to preserve that relationship, DP World has decided to transfer fully the U.S. operation of P&O Operations North America to a United States entity," DP World's chief operating officer, Edward H. Bilkey, said in the statement that Warner relayed to other senators. The announcement did not specify which American company would be involved.

I wonder what they mean by "U.S. entity." Will this be a U.S.-based subsidiary company? As Rep. King pointed out, that won't be enough to appease the pandering hysterics in Congress.

Regardless, I'm sorry to see it come to this...because what has it really changed? The vast majority of our ports are still being operated by foreign-owned companies, and that isn't going to change any time soon. A Dubai-operated company will still control an air cargo terminal at JFK Airport in New York City.

So what have we really accomplished here? Other than to spit in the eye of a staunch ally and probably set back our ability to operate in the middle east?