Anti-Arab backlash over P&O sale to DP World

By Shakir Husain, Staff Reporter


Dubai: Perceived security concerns in the United States and patriotic passions of a few shareholders over the acquisition of British port operator Peninsular and Oriental Steam Navigation Company (P&O) by Dubai Ports World were dismissed as baseless yesterday.

A top shipping industry analyst in London told Gulf News such concerns were also 'illogical and emotional."

During the extraordinary general meeting of P&O shareholders called to approve the $6.8 billion deal in London on Monday, one shareholder said: "Now I see every business in this country seems to have one object only - to sell out to Johnny Foreigner."

According to reports, glowering at P&O chairman Sir John Parker, the shareholder, identified as Captain David Hawker, said: "If the Arabs want to buy it, shouldn't you have thought maybe it's worth keeping. But a DP World spokesman said: "These were comments made by a tiny minority of P&O stockholders. But the vast majority of stockholders have voted to support our acquisition of P&O."

Parker responded by saying that P&O operated in 19 countries and made only eight per cent of its profits in Britain. By buying the 167-year-old P&O, which once helped the British empire to expand, DP World acquires the ports of New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia in the US.

This prompted some angry remarks by New York Democratic Senator Chuck Schumer on US-based Fox Television channel.

"I think there ought to be a full and public review before this company is allowed to control security up and down the East Coast," the senator said.

"We have to have hands-on control of things. And to have United Arab Emirates - I mean, they are a country that's allied with the US, but at the same time a whole bunch of the (11 September 2001) hijackers came from the United Arab Emirates," the senator said, overlooking the fact that most of those involved came from Saudi Arabia.

Calls made by Gulf News to Schumer's Washington office went unanswered.

The DP World spokes-man said: "Security is as high up our agenda as it is for P&O.

"All our terminals are ISPS certified. Security of assets and people has to be our top priority and we make it our business to maintain top global standards of security at all our operations." The P&O deal, which is to be finalised on March 2, creates the third largest global ports by container volume. It will have 51 container ports in 30 countries.

The security concerns are "emotional, illogical and completely without basis and bear no relation to any facts," said Neil Davidson, director of research at Drewry Shipping Consultants in London.

The P&O sale "is business? it is not about emotions," Davidson told Gulf News.

He asserted that DP World is a "highly respected port operator" and the deal "would not make any difference to US national security."

Davidson said similar concerns were raised when Hong Kong's Hutchison Whampoa, the world's number one port operator, acquired assets in Panama and Mexico.

"I hope common sense prevails [over the P&O deal]," he said.