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Senator: Review port takeover by Arab nation
Schumer says United Arab Emirates has been 'linked to terrorism'
Tuesday, February 14, 2006
By TERENCE J. KIVLAN

WASHINGTON -- Sen. Charles Schumer has called on the federal Department of
Homeland Security to review the impending takeover of New York Harbor's port
operations by a company based in the United Arab Emirates.

"Foreign control of our ports -- which are vital to our homeland security --
is a risky proposition, riskier yet if we are turning them over to a country
that has been linked to terrorism previously," said Schumer (D-N.Y.) in a
statement yesterday.

But James Devine, president of New York Container Terminal at Howland Hook
in Mariners Harbor, seemed puzzled by the senator's trepidation.

"He probably knows more about it than me, but I have never thought of the
United Arab Emirates as a hotbed of terrorism," said Devine in an interview.

The company, Dubai Ports World, won the right to assume control of the
harbor as a result of a $6.8 billion acquisition of the previous contractor,
the British-owned firm of Peninsular and Oriental Steam Navigation Co., the
fourth-largest enterprise of its kind in the world.

RUN OTHER PORTS

Under the sale, Dubai also will run the ports in Baltimore, New Orleans,
Miami and Philadelphia.

As port operator, Dubai will oversee all functions in the harbor except for
cargo screening, which is the responsibility of Homeland Security. The
functions controlled by Dubai will include regulating the arrival and
departure of cargo, and hiring security personnel.

Schumer charged that the sale was "quietly" cleared by a government panel --
the Committee on Foreign Investment in the United States -- without public
scrutiny.

"Even if the company is perfectly suited to run our ports, what checks do we
have in place to ensure it is not infiltrated?" the senator said, adding
that an investigation is needed to "give this company a clean bill of
health."

FOREIGN COMPANIES

Devine said he would be concerned were the firm based in Syria, Egypt or
Saudi Arabia. "But the United Arab Emirates doesn't jump off the charts for
me" as a center of terrorist activity, he said.

He added that foreign companies control most of the port terminal operations
in the harbor, including NYCT. It is owned by a Hong Kong-based firm, OOCL,
which runs the Howland Hook facility under a long-term lease from the Port
Authority.

"It's where we are today," said Devine. "We are an international industry."

But he stressed that jobs and other "assets" in the port would remain
"American-based."

The United Arab Emirates has a somewhat ambiguous record. Since declaring
the war on terror in the aftermath of 9/11, the Bush administration has
praised the Arab nation as an ally in the fight.

But the country, a loose federation of kingdoms, was used as a staging area
for the 2001 suicide hijackings. Money was transferred through its banking
system to help pay for the operations.

Several of the hijackers traveled through the Emirates on their way to the
U.S. One of the hijacker pilots -- Marwan al Shehhi -- was born in the
Emirates. He flew the plane that hit the World Trade Center's Tower 2.

Terence J. Kivlan is Washington correspondent for the Advance. He may be
reached at [EMAIL PROTECTED]



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