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Wednesday, March 08, 2006

Putting Dubai on the map, one takeover at a time...

So finally, after so much hard work, Dubai is on the map for most Americans. Unfortunately it is of course due to a controversy. I guess the optimist in me can say, "Any media exposure is good exposure," but there does come a time in the world today when certain media will almost certainly continue to bring this part of the world (the Arab states) down even further.

For those of you unaware, living in a bubble, or just sick enough of the media's coverage that you don't care and don't know what is going on, here is a small back-story...
Dubai Ports Authority, under their partnership Dubai Ports World, a very large government owned entity that operates one of the world's best, fastest, and ideal ports recently won a bidding war with PSA (Singapore). They were bidding on ports owned by Peninsular and Oriental Steam Navigation Co., or P & O, a British owned ports conglomerate. These ports are spread all over the world, from East to West and this bid was to make Dubai Ports World the world's 3rd largest ports operator (behind a Chinese one, and PSA).

The ports in question in the US are six major ones spread all over the nation. Of interesting note is that there are over 350 ports in the US, nearly 100 of which are owned by a foreign entity. Of them, many have been operated this way without any major complaints or drawing any major scrutiny for decades. There are currently ports in the US owned by China, Japan, Singapore, and Denmark (in addition to the P & O run ports, which were British owned and run, but soon to be Emirati).

Peninsular and Oriental Steam Navigation Co. also owns and operates ports in Canada, Buenos Aires, France, a number of Asian countries (including China), and of course the UK.

It is an economical reality that US companies are finding it more difficult to make a profit or find any other reason to keep running these ports. It is a global reality that foreign companies are able to take over the ownership and security of world ports. While it is true that some do find a little profit primarily it seems to be the case that dominating the world's ports (or certain strategic ports) offer other opportunities for companies (and countries), such as cost saving, ease of entry, and of course world dominance (aka power).

So as you can see, this takeover seems to be pretty routine. A company with money buys out another that is running ports in a third country. For instance, neither France, nor the UK (nor China nor Canada) seems to be saying much about Dubai taking over their ports. They all see it as normal, and bound to happen.

So I ask why all the fuss in the US about this? The answer is quite simple. This isn't about a port being taken over by a foreign entity at all. The world isn't that convenient today. In short, we aren't that impartial in order for something so simple to work itself out.

What this is all really about is very evident in the way the media is spinning this takeover in the majority of its headlines. "Arab Ports Takeover." Keep in mind the source, these are some of the most liberally tagged media in the US, I haven't even bothered to cite the more conservative sources...
CNN.com - Lawmakers urges White House to review Arab port takeover ...
Lawmakers Deride Assurances on Arab Port Firm (Washington Post)
Suit filed to block port takeover by Arab firm - US Security ... (MSNBC)

Was there ever a suit or any media frenzy saying "Asian ports takeover" or "European Ports Takeover" or even worse when China took over the ports, "Communist US Ports Takeover"? Well, maybe there was some 20-30 years ago somewhere on page 6 a mention of this. Perhaps I am young and my internet resources won't come up with a comprehensive search to find the information needed from so long ago. However, I have consulted some elder members of my family and they are yet to mention anything of the sorts. I challenge everyone to find such a case, showing that this has always been such a big deal. If so, I would shut my mouth except for the fact that the media is still spinning this in a very terrible way.

What am I getting at here? Well people in the US don't know that much about Dubai Ports Authority, or Dubai Ports World, or Dubai. If you doubt this, go to the US and ask 100 people where Dubai is...you will probably get a response of India, Massachusetts, or "I don't know" before you will get the United Arab Emirates. If the firm in question were called "UAE Ports Authority," it would be simple and non decimator in spin in the media, "United ARAB Emirates PA takeover" and the point would be highlighted simply and honestly for all news agencies. Instead, the media had to simplify the tagline to keep people interested...from Dubai to Arab, and wham...people are entertained and enraged. It is no wonder why now, all of a sudden, workers at ports are seen on TV protesting foreign takeovers of US ports (especially with Arab slandering picket signs). If you want Americans and the media upset about something, simply show the Arabness of it.

As cliché as it is to talk about the media and its spin, after having left the US for quite some time, and lived among people who tend to sway away from the mainstream opinion of the US government and media, and after having to defend and stick up for my country hundreds and hundreds (if not thousands) of times, I have come to realize how to challenge the points that are done incorrectly, while accept and appreciate what is done right.

While at this juncture, especially with my close ties to the UAE, I can offer my honest opinion. The question at hand here, "Is the Dubai government taking over US ports security a good idea?" is a very good one. If we were to listen to people who can be considered two of the biggest enemies of many people in the Arab world (Bush and Israel), the answer would be a surprising YES!
CNN.com - Israeli shipper endorses DP World - Mar 2, 2006
Bush faces rebellion on ports deal - US Security - MSNBC.com

In my personal response, the security of US ports, and other ports abroad (not just in France, Canada, China and the UK), should be managed by their own governments. It is a risk at all times to have another firm run your security, especially when that firm has only economic interests in your port. So no, I don't think Dubai should have control over the world's security at this point in time. Neither should China, nor the US. No country has the other country's safety or interest correctly in mind, at least not to the extent that their own country does.

Honestly though, this isn't the main point of this whole ports fiasco...it is the perception of all things Arab in many of the US people's mind, and the spin of the media in reaching this end. It just doesn't make any sense, and there is no source of congruity between this dealing and the hundreds of thousands of other dealings that put foreign firms or governments in control of US interests. The US Government never stopped anything like this before (as congress is trying to do now), even as Communist China, or for that matter, pre-911 Saudi foreign investment in the US.

Lastly, why aren't there any articles like what I am writing right now being published or promoted (especially in the US)?

5 Comments:

  • At 8/3/06 23:42, S!lent.Sp!r!t said…

    I totally agree with the fact that a port should be run by the country rather than another because there is no point in risking the security by providing access to a foreign country.

    But with the US already giving access to many world countries, it comes to many Arabs' shock the reaction the government has towards our country port takeover. It is not like we are looking to profit as much as it is the idea of running worldwide ports in addition to the media coverage the country would get. But things didn't work as wished and Dubai, UAE is getting a very bad image where ppl are now aware of us as "the country that wants to rob us our security".

    N here we get a BAD publicity... nice work!!

    AIESEC would have more tough times with building the bridge now ... It is worth it 100% but its gonna be hard.

     
  • At 8/3/06 23:58, Drake said…

    Very good points, HDogg.

    If people only knew Dubai was about as typical of an Arab city as New York is an American city. The place looks like Los Angeles with all those pimp rides flying around.

    All this rage just showcases the sad truth which is the average American doesn't trust Arabs..perhaps no more than the average Arab trusts an American. That's the times we are living in. The Gov'ts perpetuate an old way of thinking. The media feeds off the ignorance promoted by the Govt's. The oil and weapons companies get richer and richer (which are typically owned by the Gov't or friends of the Gov't) off the hatred, greed, and ignorance. It's a fun circle.

    Funny, People in the US are upset about foreign ownership of ports, but remain relatively naive about all the other foreign investment we have that could, if something went astray, affect them just as badly. For instance Saudi investment in Citigroup or Citibank. China buying 2 billion USD a day to keep the dollar from PLUNGING. One of the reasons the UAE is so rich today is because they invested *heavily* in Western stocks way back in the 70s with the money they made off the creation of OPEC (see: petro bucks). America has been for sale for decades. Why should this be a surprise now? Because there's money to be made that's why!

    My point is businesses have the great ability to see past nationalities and politics and focus on one thing: profit. I say give the port security to the company that has demonstrated the best methods for dealing with security issues. From my understanding this has already been going on (foreign ownership of Californian ports), and little national security has been compromised. And lets face it, it's not like our Gov't can really take care of us in the event of a disaster anyway. I'd rather have a high tech arab screen me at an airport then some joe-blow american who just lets people pass by. Get the job done, and get it done well.

    One final note: It's interesting to note that I haven't read much about how the UAE gave $100 million for Katrina victims, ah well, I guess that doesnt fit the media's image of "Arabs" now does it...

     
  • At 9/3/06 01:19, tiklod said…

    Let's just take a look at who are the loudest people in this: It's not the department of commerce, not homeland security, not the treasury, not the pentagon, not port security specialists, or the white house. This whole controversy is simply a fabrication engineered by politicians and the media who jump at the Bush administration when the opportunity arises. DPW has been battling PSA since early fall, this is not a new issue.

    DPW has Bob Dole as their D.C lobbyist, this deal will happen without any compromises or setbacks.

    The yield: More funding for port security at large, step up the Coast Guard. But nothing will affect DPW.

     
  • At 9/3/06 18:47, Anonymous said…

    DPW could be forcd to shut down terminals at US ports once they become theirs. This is quite realistic. If they don't let them manage the terminals they might as well shut down a few and create a series of hubs (Miami,Baltimore, New York). The slack could be picked up by aquiring a rail company such as CSX.

     
  • At 10/3/06 07:36, Eric W Hensel said…

    This is from the BBC...something new and rather normal for the times...
    "Arab-owned DPW made the move as members of both the House of Representatives and the Senate warned they would block the takeover over security concerns."

    This is in response to the new measure, after unjust pressure from the house and senate to put control of these ports outside of the new rightful owner.

    I still can't see how this is happening, but it seems as though this will eventually lead to DPW selling off the US ports to a US company. Thus we will have foreign firms controlling security at many of our ports, but at least it isn't Arab. Can't wait to keep watching the odd little story unfold...

     

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