What the Media Won't Tell You About Dubai and the Ports
The on-going coverage of the P&O Ports acquisition by Dubai Ports Worldwide is a bit surprising to many in the maritime world. Surprising, maybe disturbing, is the complete lack of investigative skills media giants like CNN (especially), who have covered it incessantly, and other networks have exhibited throughout their coverage.
I am not suggesting it isn’t prudent to look at these issues, but if national coverage is going to dedicate hours of air time to a highly-specialized industry such as international shipping, it is incumbent on reporters, anchors and producers to actually learn a little more about the subject they are covering. Instead, they sensationalized something as mundane as the sale of an international company and in doing so, tossed an emotional Molotov cocktail into the viewing audience, sat back and fed on the panic. It is highly irresponsible and just plain bad reporting.
Most erroneous of the statements which have continued to scream across headlines is “U.S. Gives Control of Six U.S. Ports to UAE.” For anyone in the maritime industry, or who has any connection to it, that statement, if it weren’t so inflammatory, would be laughable. P&O Ports is a stevedoring company that leases land within port property, they own only forklifts and top loaders which facilitate the transfer of containers for over-the-road transport, utilize port-owned cranes to remove cargo from ships and employ labor. They have no authority for overall port management. The similar example would be a foreign car manufacturer operating a factory in the U.S. that builds cars and employs U.S. workers to build them.
Port security, either landside or water, software the runs the gates into the terminals, port access – among other security issues -- are all coordinated by the port administration, or authority, in each state and/or municipality along with the Coast Guard and Customs. There are approximately 14 terminals at the Port of Baltimore – each run or managed by a different entity, some public, some private. P&O Ports, which currently leases its space from the Maryland Port Administration, falls under the jurisdiction of the Port of Baltimore, not the other way around. That was never going to change. The same would be true for the five other ports in question.
Few people interviewed were actually maritime executives – or even journalists who cover the industry for trade journals. Why? Because those industry representatives, for whom this is every day ‘stuff,’ knew the coverage was ‘much ado about nothing.’ Interviewing them would have taken the wind out of the firestorm.
Politicians on both sides of the aisle have been disappointing. Many of these same politicians take regular port tours in these various states. They’ve either learned nothing or are seizing the moment to grandstand before a local election. They were clever to jump on the wave of hysteria sweeping their constituency, ordering further investigations whereby typically none are warranted. No one expects the average American to know where their flip-flops, computer keyboards, clothing or household goods come from or how they get here. Maritime officials don’t expect soccer moms at Wal-Mart to contemplate the complexities of foreign flagged ships or bills of lading. What we all should expect, however, is our news outlets use due diligence toward the subjects they cover, no matter how complex, and to consult the experts who know the topic better than they do. I am now curious about some of the other industries they erroneously cover and how accurate their reporting really is.
Lisa Shenkle
Guest columnist
Former Director of Communications, Port of Baltimore
Freelancer, Journal of Commerce and Shipping Digest

15 Comments:
Why Dubai? After being brianwashed about safety and color coded terror days, of course we are not happy with an Arab country having anything to do with our ports.
If you dig deep you will see that the Carlysle Group is involved in the deal too. Just follow the money and that is what this is all about.
I don't like it at all and now 70 percent of the Anmerican people don't like it either.
The media probably didn't do all of their homework, but neither did the President.
There is a secure system in place for the review of these types of international transactions. Bush's approval or insight was unnecessary at that level. Conspiracy theories? That just a bit hysterical, too. International buyouts, even local deals in every industry, are tainted with the smell of incest among unlikely partners. Investing in something is one thing; colluding is quite another.
This is just a holding company investing in more assets. Of five members of their executive board, three are Americans; including the CFO & COO.
Lets see coverage of real news and stop wasting people's valuable time with crap like this.
Condi and the gang thought that the threat of Osama was crap too.OOPS, they were wrong.
Why take a chance?
My guess is the last poster didn't read the essay in the front that the guest columnist wrote. Nobody's taking any chances -- there are no chances to take. Sheesh. Next. Oh, and P.S. You must have a short memory: it's CLINTON who didn't think Osama was a threat.
I just saw the post about OBL and the Clinton administration. They warned Bush and Condi over and over again before 911 and they mishandled the information. Accept it. This group of people running this government are terrible. They have made too many bad mistakes and we can't trust them anymore. So why let Dubai run the ports?
THE DPW DEAL: FOLLOW THE MONEY
To understand what the DPW deal is about, follow the money to the facts. Here's the money trail in its least convoluted form:
*DPW has at least two ties to the White House: Treasury Secretary John Snow, whose department approved the $6.8 billion deal, and David Sandborn, who ran DPW's European and Latin American operations, and who was recently tapped to head the U.S. Martime Commission.
*Snow, former head of CSX, the rail carrier, engineered the sale of the company's port operations while at CSX and quietly put the finishing touches on the DPW deal in 2004, a year after he became Treasury Secretary.
*While serving as CEO of CSX, Snow earned approximately $29.3 million in salary and other compensation.
But Snow, in cooperation with the
Bush Administration, stitched a sweet golden corporate parachute for himself. In a confidential agreement with the CSX board of directors, Snow was paid a bonus of $100 million upon leaving the company if he agreed to go into "public service." This "public service" arrangement was nailed down in advance in an hushed agreement with the Bush Administration.
*In 2003, the year Snow came to Washington from CSX, his former company's CSX Lines, a wide-ranging port operation, was purchased by the Carlyle Group for $300 million. The CSX affiliate, renamed Horizon Lines, was later sold by the Carlyle Group to Castle Harlan of New York for $650 million. A nice profit for the GOP-heavy investment group.
*CSX, meanwhile, launched CSX World Terminals to develop operations in Hong Kong, China, and other Asia Pacific ports. Not long afterward, CSX WT was sold to DWP, creating the third largest ports/shipping monopoly in the world.
*DPW, as thanks for all the sweetheart cooperation, and as a payoff for political favors, proposed to invest $1.2 billion in Carlyle Group enterprises.
*The Bush family has been on the board of the Carlyle Group for many years along with other top GOP operatives.
*Finally, with the money trail exposed, at least in part, the columnist's BLAME THE MEDIA assertions seem a bit naive and beside the point. It plays into all the diversionary babble that keeps public scrutiny away from the money trail.
*Is DPW operation of U.S. ports a "threat" to national security? Is the media hyping the subject? These questions are classic Machiavelli. "The Prince" would have loved having a hand in this big money scam, leaving the general public to squabble over national security, racism, the media and other wedge issues.
Oh, brother. Yes, John Snow got a sweet deal. Yes, he made a god-forsaken amount of money and some of his friends benefitted from that. But is what he did illegal? Are you suggesting what CSX did was illegal? Are you proposing that its only Republicans who know how to turn a profit when buying and selling companies? They could have just as easily lost their shirts, but -wait, they know how to use math and leverage deals. Oooo-ahhhh. Let's skewer them for having more money than they need and making even more on being in the right place at the right time. Do you even comprehend how international commerce operates? It's a small world, my friend. Most people have no clue how much trading, buying, moving goes on hand over fist. CSX is an over-bloated company, doesn't do a whole lot to help out the little guy and completely ignores, generally its responsibilities to the various communities that it runs through. But you're not mad at CSX. You're annoyed because some of the rest of us don't get what the problem is. If there were anything illegal afoot, believe me, the Katie Couric's of the world (isn't she cute?) would be blathering about it every morning to America. A few rich guys got richer. They have allot of power. Get over it.
What everyone seems to be forgetting is this: even if there is a money trail back to American investors...uh, isn't that a good thing in terms of port security? Duh.
I don't know much about ports, but I'm reading this and can't believe that someone is blaming Condi Rice for Osama. Revisionist history is a wonderful tool. This is directly from MSNBC.com:
In 1998, President Clinton announced, “We will use all the means at our disposal to bring those responsible to justice, no matter what or how long it takes.”
NBC News has obtained, exclusively, extraordinary secret video, shot by the U.S. government. It illustrates an enormous opportunity the Clinton administration had to kill or capture bin Laden. Critics call it a missed opportunity.
Don't you think Bush has enough problems that you don't have to blame him for Clinton's, too?
Was the DPW deal illegal? Old saying: "Big money is almost always made in the dark." The DPW deal's legality isn't the key point. It merely represents yet another example of government for sale, especially in the hands the current regime. Is it illegal to sell off government assets to cronies and lobbyists? Is it illegal to give Halliburton sweetheart deals? Some people seem to think so. It is illegal to ignore border security? Is it illegal to buy elected officials? Ask Tom Delay. Ask Mr. Cunningham. Ask those who seek lobbying reform. Is it illegal to coarsen our culture with wedge issues like gay marriage and bans against stem cell research--diversions which blur public focus from proposals such as "the bridge to nowhere"? What about Constitutional freedoms? is it illegal to twist them to politcal ends? Was it illegal to intrude in the life and death struggle of the Shaivo family? Is it llegal to be incompetent in Iraq and New Orleans? What about WMD--is lying about nonexistent weaspons illegal or just immoral? DPW is merely a symptom of a much larger illness that will take America many generations to cure. As for the complexities of international finance, we know a few things about that, too. Maybe more than you think we can "imagine." Get used to it.
I agree with the last post. What a
country of follow the leader. happily the last public opinion poll of the president was 37% approval.I can't wait to get this group of selfish immoral people out of office.It looks like they will not be in control of Congress after November so we will have checks and balances.
Your guest columnist must know a lot about how ports operate. So it is a total mystery how the writer misses the whole point of the Dubai controversy. We don't want a foreign GOVERNMENT controlling our ports. Foreign-owned-private, OK. But a big NO to a foreign GOVERNMENT--any foreign government-- controlling American ports. It is outrageous that our government has shamelessly hung a for sale sign on America.
Luckily Bush's approval ratings are so low that he may be impeached and we won't have that problem anymore. Cheney will resign and Dennie H. will be in charge.
He'll be a puppet until the Democrats come to the White house again and clean things up.
It's so depressing to see so many posters who can't read. The guest columnist was pretty succint.
The simple message is: DUBAI WAS NEVER GOING TO RUN THE PORTS. It's just that SIMPLE.
It's not a political message. But it got politicized. This is the problem with America. Everyone is quick to have an opinion about something because they are a 30-second expert after they 'see it on TV.' Clearly, it is just easier for you to believe in the mass hysteria caused by CNN and other outlets, than it is to believe someone who actually works or worked in the industry.
Hope you pay better attention to your doctor instead of those who just 'play one on TV.'
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