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The Honolulu Advertiser
Posted on: Friday, February 24, 2006

Arabs and U.S. ports: It's time for concern

The fuss over the prospect that an Arab-owned company may take control of a firm that runs six major U.S. ports is misplaced.

The real issue is general port security, not specifically whether the company that runs the ports is owned by a foreign firm, in this case an Arab ally.

At first glance, the fact that Dubai Ports World — a company owned by one of the United Arab Emirates — wants to buy the London-based Peninsular & Oriental Steam Navigation Co. raises understandable concern.

To many, this $6.8 billion deal doesn't sound quite right at a time when our country and our politicians seem to be driven by fear of terrorism and homeland security.

The deal means a company owned by an Arab state will have operational control of six U.S. ports: New York, New Jersey, Philadelphia, Baltimore, Miami and New Orleans.

President Bush defends the sale, and rightfully so.

For the U.S. to not approve the deal would, as the president said, "send a terrible signal to friends around the world that it's OK for a company from (another) country to manage the port, but not a country that plays by the rules and has got a good track record from another part of the world."

On that score, the president got it right. In fact, foreign companies already are dominant forces in U.S. ports.

In a globalized economy, singling out an Arab-owned firm is wrong and amounts to a form of racial profiling.

A critical point is that operations of a port are a different matter from security, which remains the responsibility of the local port authority, the Department of Homeland Security, the U.S. Coast Guard and U.S. Customs.

Congress is right to ask for a thorough review to uncover details of this agreement. For instance, we are learning that the Bush administration cut a deal that required DP World to cooperate with future U.S investigations, among other provisions.

There may be other details other than the country of origin of the buyer that become matters of concern. In this sense, transparency, not secrecy, should be the rule.

In fact, devising a transparent system, covering everything from manifests to personnel records, should be a priority requirement for all foreign companies that operate in U.S. ports.

So should finalizing a national vetting system for all maritime workers.

Beyond the question of what company operates the ports is the larger issue of overall port security. Congress should look for more funding to ensure that more than a fraction of port cargo gets inspected.

So far, the United States has spent nearly $20 billion securing airports, while our 360 ports have fought over crumbs — just over $600 million in federal grants.

Upgrading overall port security measures would be far more meaningful than the political bluster we've heard to date.