DP World Santos Appoints Dallas Hampton as New CEO
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.
Dubai Finishes Buying P&O
Reports indicate that Dubai Ports World, a state-owned international port operator, cleared its last major hurdle yesterday in acquiring a British company that helps run several U.S. terminals the companies said yesterday. The acquisition of Peninsular & Oriental Steam Navigation Co., whose shareholders agreed yesterday to accept Dubai Ports World's offer of 3.9 billion pounds, or $6.8 billion, in cash, would create the world's third-largest port operator, with 51 terminals in 30 countries. It will also give the aggressive Dubai a larger foothold in the booming trade between Asia and the United States. P&O officials have said they expect the company to be run separately out of London and do not expect changes in U.S.
Another Tanker Explosion Kills One
A January 5 report from Port World stated that an explosion on an oil tanker docked in the eastern Chinese province of Shandong has killed one person and left two others missing.valve-replacement works on the deck. (Source: Port World)
State Assembly to Hear Port Concerns
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.
Hearing on National Security and DPW Acquisition
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
DP World Invests $300M in Port Security
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.
Bill Introduced Investigation of Port Facility Acquisition
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
Bill Introduced on Port Security
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
Briefing on DPW acquisition of P&O
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
DP World, SCA Pact for Ain Sokhna Port Development
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.
Hearing on Security of Terminal Operations
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.
P&O A Takeover Target
THE UK's largest ports and ferries operator was reported to be a £3 billion takeover target of a Middle Eastern rival. P&O could receive an approach from Dubai Ports World (DPW) as soon as this week after it hired Deutsche Bank to advise it on a bid, according to The Sunday Times. The Middle Eastern firm is understood to have contacted banks about financing a bid for P&O, which owns 27 container terminals around the world including Southampton and Tilbury in the UK. Takeover interest in UK ports firms has spiralled this year with Mersey Docks & Harbour - the owner of ports at Liverpool, Heysham and the Medway towns of Sheerness and Chatham - bought by Manchester-based Peel Holdings for £780 million.
New Marina for Luxury Yachts at DP World's Rashid Port
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…
$1B Sought for Port Security
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.
White House Urged to Review Port Deal
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.
P&O Shares Increase
Dubai Ports World raised its offer for the British port operation Peninsular and oriental steam Navigation Co. to almost $7 billion, beating an offer from Singapore's PSA International Ltd. The offer sent P&O's shares up almost 5 percent on January 27. P&O and DP World, which is owned by Dubai's government, had agreed to the $6.9 billion cash bid. The offer, which amounts to $9.26 per share, topped a $6.3 billion offer from PSA, a unit of Singapore's government-owned investment company Temasek Holdings Pte. P&O had recommended shareholders accept the Singapore bid before Dubai raised the stakes. Shares in P&0 were trading just below that level at $9.71 on January 27, up 4.6 percent, in London. (Source: AP)
DPW Controversy Continues
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.
History of U.S. Review of Proposed DPW 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…
Port Controversy Continues
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.
P&O, DPW Close to Deal
Peninsular & Oriental Steam Navigation Co (P&O) is close to recommending a more than $3B offer from Dubai Ports World (DPW), according to press reports. The Weekend Financial Times, which claimed DPW offered 430 pence for the British ports and ferries group, said the size of the liability in P&O's pension fund needs to be agreed before the board can recommend the offer. The Business however said the recommendation could come as early as Tuesday. Neither paper cited sources. A spokesperson for the company declined to comment. Source: Forbes
London Gateway Ups Security Measures
Expanded use of converged security and information management platform will support physical and IT security program at DP World London Gateway. London Gateway, one of the U.K.’s major ports owned and operated by DP World, has implemented converged security and information management (CSIM) software port-wide to increase security and provide overall situational awareness capability. Situated on the north bank of the River Thames, the deep-sea container port is located next to Europe’s largest logistics park, providing shipping access to key U.K. consumer markets.
P&O Agrees to $6.3B Takeover Offer
The AP has reported that the Peninsular and Oriental Steam Navigation Co. said it has agreed to a $6.3 billion offer from Singapore port operator PSA International -- a switch of alliances that is likely to spark a bidding war for the 165-year-old British maritime icon. The approach from PSA trumped a 3.3 billion pound ($5.9 billion) cash offer from government-owned Dubai Ports World that P&O agreed to in November. P&O Chairman John Parker noted that the 470 pence ($8.40) per share offer from PSA, which would make the combined company the world's largest ports operator, was a 6 percent premium on the 443 pence ($7.91) offered by DP World. Shares in P&O were trading above both offers Thursday, up 1.8 percent at 516.25 pence ($9.22).
UAE Firm May Oversee 6 U.S. Ports
The AP has reported that a company in the United Arab Emirates is poised to take over significant operations at six American ports as part of a corporate sale, leaving a country with ties to the Sept. 11, 2001, hijackers with influence over a maritime industry considered vulnerable to terrorism. The Bush administration considers the UAE an important ally in the fight against terrorism since the suicide hijackings and is not objecting to Dubai Ports World's purchase of London-based Peninsular and Oriental Steam Navigation Co. The $6.8 billion sale could be approved Monday and would affect commercial port operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. DP World said it won approval from a secretive U.S.