Dubai Ports World News

The Department of Transport in Abu Dhabi signed a Memorandum of Cooperation (MoC) with the Dubai Maritime City Authority (DMCA) with an aim to promote the development, consolidation and regulation of the maritime sector based on competitiveness, sustainability, excellence and innovation.The MOC is a result of relentless efforts by both parties to establish effective strategic partnerships to elevate the UAE’s position as one of the world’s best maritime centers.The agreement was signed by Sultan Ahmed bin Sulayem, Group Chairman and CEO of “Dubai Ports World (DP World)” Chairman of “Dubai Maritime City Authority” and His Excellency Khalifa Bin Mohammed Al Mazrouei…

The United Arab Emirates (UAE) condemned Djibouti’s cancellation of DP World’s contract to run the Doraleh Container Terminal, calling it an “arbitrary” flouting of a signed agreement, said a report in Bloomberg. Media reports yesterday said that Dubai has accused Djibouti of illegally seizing a port operated by one of its state-owned shipping companies and started legal action against the African government. “Djibouti government’s seizure of the Doraleh port is regrettable,’’ Minister of State for Foreign Affairs Anwar Gargash wrote on Twitter. According to a press statement from DP World, the Government of Djibouti illegally seized control of the Doraleh Container Terminal from a Dubai Ports World (DP World) owned entity that designed…

The Brazilian terminal DP World Santos will now be run by the new CEO Dallas Hampton, , an Australian executive with degrees in Business Administration, Logistics and Occupational Safety and with vast experience in the ports and logistics sectors. The modern private port terminals, situated on the left bank of the Port of Santos, announced that Ernst Schulze, who served as Chief Executive Officer for nearly six years, is stepping down to assume another opportunity at the DP World group. Ernst was responsible for installing the Embraport terminal at the Port of Santos, forming the work teams and starting operations in July 2013. Dallas…

DP World has announced plans to build a new marina for luxury yachts at Port Rashid in Dubai. The project comes in response to an increased demand for luxury yachts. Tenders for construction will be invited soon. The first phase of the project is scheduled to open by 2018, with a capacity of more than 400 boats and sailing yachts with lengths in the range of 15 to 35 metres. The second phase will be for luxury yachts berth with length of more than 100 metres. Sultan Ahmed bin Sulayem, Chairman of the Ports, Customs and Free Zone Corporation and Chairman of the Dubai Ports World, said, "The corporation will develop Port Rashid Marina as an integral part of its commitment to supporting the diversification of the economy of the UAE…

Suez Canal Authority (SCA) and the Red Sea Ports Authority signed an agreement with Dubai Ports World (DP World) and Sonker Bunkering Company for the development of Egypt’s Ain Sokhna seaport, reports Egypt Independent. The signing of the deal comes in line with directives by Egypt’s President Abdel Fattah al-Sisi to upgrade the sea port’s status as part of the broader scheme to develop the Suez Canal region, SCA chief Mohab Mamish said. The joint venture will be responsible for installing a new harbor parallel to the current oil tanker harbor over a period of one year, Mamish said. He added that the undertaking would facilitate the exchange of petrochemical and gas products.

Dubai Maritime City Authority (DMCA) conducted an evaluation meeting to analyze the results of the recent Ship Board Fire Drill conducted on Serenade of the Seas a cruise ship currently berthed in Dubai’s Mina Rashid Cruise Terminal. The meeting saw extensive participation by representatives from the entities involved in the drill, where they looked into the performance and strengths of the Cruise Ship Emergency Response Task Force and pointed out areas requiring further attention in order to maximize safety for both passengers and crew. The evaluation is part of broader efforts by public and private entities to improve emergency procedures and promote maritime safety standards, in line with a common vision to promote a safe and highly developed maritime industry in Dubai.

Dubai Maritime City Authority (DMCA), the government authority charged with regulating, coordinating and supervising all aspects of the maritime sector in Dubai, has announced that the Cruise Ship Emergency Response Task Force, convened in September, 2011, to address the challenges presented by the introduction of ever larger cruise ships to the UAE waters, hosted the first cruise sector mass casualty table top exercise and drill last week. The Task Force, comprised of federal and local emergency responders…

Dubai Ports World (DP World), the world's third-largest port operator, is investing around $300m in port security, local newspaper Gulf News reported recently. The money will be used to secure 42 terminals worldwide, according to DP World's director of security David Fairnie. DP World has commissioned a three-tier foolproof container security initiative that involves X-ray, radiation and Optical Container Recognition (OCR), according to Fairnie. These can detect any radiation being emitted from the container, while the OCR captures container data and manages the supply chain. The company has also employed closed-circuit television (CCTV), alarm systems as well as anti-invasion systems across all its ports and terminal facilities.

Mermaid Marine Australia Ltd will merge with Dubai Ports World subsidiary P&O Maritime Services Pty Ltd through a share-trading arrangement. Mermaid will issue 221.9 million shares to DP World in return for 100 per cent of the shares in P&O Maritime Services Ltd and P&O Polar Australia Pty Ltd, subject to shareholder approval. The deal will result in DP World owning 60.4 per cent of Mermaid, with existing shareholders holding the remaining 39.4 per cent. Mermaid will also assume an additional $40 million of net debt initially in the form of debt due to DP World as part of the transaction. Mermaid directors said in a statement that the proposed merger would create a highly attractive business diversified across a range of maritime services…

Sen. Robert Menendez, D-N.J., called on Congress on March 10 to fund technology that would scan 100 percent of the cargo containers entering America. Menendez wants Congress to add $1 billion to the 2006-07 federal budget to improve scanning technology, help developing countries improve their ability to inspect containers and provide for additional inspectors at U.S. ports. President Bush said Friday that he was troubled by the political storm that forced the reversal of a deal allowing Dubai Ports World to take over some operations at six American ports, saying it sent a bad message to U.S. allies in the Middle East. Bush said the United States needs moderate allies in the Arab world, such as the United Arab Emirates, to win the global war on terrorism.

Republicans on the House Homeland Security Committee have postponed work on the fiscal 2007 Homeland Security Department authorization bill, prompting heated criticism from Democrats who say the move might undermine the committee's credibility and prevent the measure from being completed this year. According to a committee aide, Republican committee leaders say the delay is temporary while they work to pass a maritime security bill. All 15 Democrats on the panel fired off a letter Thursday to Homeland Security Chairman Rep. Peter King, R-N.Y., opposing the move. The committee did the first-ever authorization bill for Homeland Security last year, which overwhelmingly passed out of the House by a 424-4 vote.

Representative King (R-NY) introduced the Foreign Investment Security Improvement Act of 2006 (H.R. 4807) to require an investigation under the Defense Production Act of 1950 of the acquisition by Dubai Ports World of the Peninsular and Oriental Steam Navigation Company, and for other purposes. This is a companion bill to S. 2333, introduced earlier by Senator Schumer. source: HK Law

On March 2, the House Armed Services Committee will conduct a Hearing on the national security implications of the Dubai Ports World acquisition of P&O Ports. source: HK Law

The Senate Committee on Commerce, Science & Transportation conducted a Hearing on Security of Terminal Operations at US Ports. The purpose of the hearing was to examine the possible security implications of acquisition by Dubai Ports World of P&O Ports. Senator Stevens (R-AK) pointed out that federal agencies, such as the Coast Guard and the Customs & Border Protection, are in charge of port security, not the operators of individual terminals. Most of the statements of the witnesses are not yet available. Mr. H. Edward Bilkey, COO of DP World, said that his company welcomes the opportunity to tell its side of the story regarding the acquisition. Mr. Christopher Koch, World Shipping Council, discussed the international character of shipping. Mr.

According to reports, the chairman of the House Homeland Security Committee urged the White House on to reconsider approval of a sale that would give a company in the United Arab Emirates control over significant operations at six American ports. Other U.S. lawmakers have expressed concerns about the sale's implications for maritime security. The Associated Press reported Saturday that government-owned Dubai Ports World had won approval for the $6.8 billion deal from a secretive U.S. panel that considers security risks of foreign companies buying or investing in American industry. Critics have complained that control over port operations by DP World could endanger U.S. security. They cite the UAE's history as an operational and financial base for the hijackers who carried out the Sept.

Last Monday, a $6.8 billion dollar deal put the operation and control of the major New York and New Jersey ports in the control of a firm in the United Arab Emirates and owned by the Government of Dubai, Dubai Ports World. Today, Senators Chuck Schumer, Tom Coburn, Frank Lautenberg, and Chris Dodd are being joined by Reps. Chris Shays, Vito Fossella and Mark Foley in sending a letter to Treasury Secretary John Snow urging him to review the deal immediately. The deal allows the UAE company to take control of most operations at six ports on the East Coast, including: New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia.

U.S. Senate Majority Leader Bill Frist, M.D. (R-TN) made the following statement on the deal proposed by Dubai Ports World of the United Arab Emirates that would give the company day-to-day management of six major U.S. “Recent reports that a company based in the Middle East is seeking to purchase the operating rights to several U.S. ports raise serious questions regarding the safety and security of our homeland. The decision to finalize this deal should be put on hold until the Administration conducts a more extensive review of this matter. “It is important for Congress be involved in this process. I have requested a detailed briefing on this deal.

The controversy over the planned acquisition of six port facilities in New York, New Jersey, Philadelphia, Baltimore, Miami, and New Orleans by UAE-based Dubai Ports World (DPW) continues apace. Senate Majority Leader Bill Frist (R-TN) issued a Press Release stating that he is asking the Administration to delay the acquisition until a detailed briefing is provided. Representative Chris Shays (R-CT) is seeking a new thorough federal review of the acquisition. Representative Clay Shaw (R-FL) plans to introduce legislation aimed at preventing foreign entities from operating U.S seaports. Meanwhile, the White House released remarks made by President Bush defending the Administration’s decision to not block the acquisition.

The U.S. Treasury Department outlinedthe history of the review of the proposed acquisition by Dubai Ports World (DPW) of various U.S. port facilities currently operated by P&O Ports. The review was performed by the Committee on Foreign Investment in the United States (CFIUS). On February 23, the Senate Committee on the Armed Services was briefed in open session on the proposed acquisition. Ranking Member Carl Levin (D-MI) released a copy of his opening remarks. Chairman John Warner (R-VA) released a statement at the conclusion of the briefing. Subsequently, the White House released a Fact Sheet regarding the proposed acquisition. Later…

In its daily press briefing, the White House included a lengthy discussion of the process that led to the Administration’s approval of the acquisition by Dubai Ports World (DPW) of U.S. port facilities owned by P&O Ports. The White House also released a Fact Sheet outlining the Committee on Foreign Investment in the United States (CFIUS). Representative Nadler (D-NY) wants the process stopped until Congress can review it thoroughly. Representative Pallone (D-NJ) is seeking legislation to keep ownership of American ports out of the hands of foreign governments. Representative Saxton (R-NJ) indicated that a Congressional hearing would be held in the near future to examine the planned transaction.

A dispute over the pending takeover of major U.S. shipping terminals, including Port Newark in New Jersey, will be addressed February 27 by state lawmakers. The state Assembly Homeland Security and State Preparedness Committee is to consider a resolution condemning the Bush administration's approval of a deal permitting a firm owned by the United Arab Emirates government from taking over operations at the northern New Jersey container terminal. The committee will also consider other resolutions demanding that President Bush reconsider and reverse the decision involving Dubai Ports World. The Bush administration has been assailed in Congress by Republicans and Democrats for permitting Dubai Ports World to assume port operations.

The Senate Committee on Homeland Security and Governmental Affairs received a Briefing from Administration personnel on the Dubai Ports World (DPW) acquisition of the Peninsular & Oriental (P&O) company. Committee Chair Susan Collins (R-ME) issued a Press Release stating that she introduced a resolution calling for a thorough review and Congressional consultation before the transaction could proceed. Source: HK Law

Senator Schumer (D-NY) introduced a bill (S. 2333) to require an investigation under the Defense Production Act of 1950 of the acquisition by Dubai Ports World of the Peninsular and Oriental Steam Navigation Company, and for other purposes. Source: HK Law