Dubai Ports World agrees to give up management of U.S. ports

| 3/9/2006

Dubai Ports World has agreed to turn over operations at U.S. ports to a U.S. There was no word as to what entity, as of press time.

A controversial takeover of the British firm of Peninsular & Oriental Steam Navigation Co. would have given Dubai Ports World – which is owned by the United Arab Emirates – control over operations at 21 U.S. Ports.

Sen. John Warner, R-VA, announced the compromise on the Senate floor on Thursday, March 9, reading from a statement issued by Dubai Ports World.

“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,” the statement said.

The deal had drawn strong bipartisan opposition and appeared to be headed for a showdown between Congress and President Bush as the House of Representatives pushed for a vote on the deal as soon as possible.

But now that vote may not happen.

CNN reported that analysts are still trying to determine whether or not Thursday’s announcement will be enough to quell the growing opposition to the deal.

If the vote did go ahead, insiders are speculating that the port deal would not survive. CNN reported that House Speaker Dennis Hastert, R-IL, and Senate Majority Leader Bill Frist, R-TN, met with Bush earlier on March 9 to give him the news that the port deal appeared to be dead on Capitol Hill.