Jones Lang LaSalle
Reaction to Newark port deal is unprintable
On the waterfront, fear and loathing
Tuesday, February 21, 2006
BY BRIAN DONOHUE
On any day, the docks of a busy waterfront like Port Newark can be a place to hear some of the most colorful phrases the English language has to offer.
But yesterday was something special.
At the mention of the Bush administration's approval of the sale of port operations to a Dubai-based company, longshoremen, truck drivers, mechanics and waitresses gushed with harsh words.
"Horrendous. Scary and horrendous," said Tom DiDomenico, a longhoreman from East Hanover, uttering one of the few printable reactions by customers at the Port Eatery on Corbin Street in Newark. "I'm a big Republican and I think Bush has lost his mind."
The Bush administration last week approved a $6.8 billion deal that allows Dubai Ports World, a state-owned property of the United Arab Emirates, to take over the London-based Peninsular and Oriental Steam Navigation Co.
The sale would give DP World control of port operations at a terminal in Newark, a passenger terminal in New York, and facilities in New Orleans, Philadelphia, Baltimore and Miami.
Though the UAE is considered a U.S. ally, the FBI has concluded the 9/11 terrorists had financial ties to the country. UAE was one of three countries, along with Saudi Arabia and Pakistan, to recognize the Taliban as the official government of Afghanistan.
The country's record on terrorism has sparked criticism of the deal by members of Congress from both parties.
During a stop in Birmingham, Ala., yesterday, Attorney General Alberto Gonzales defended the deal and said the administration had a "very extensive process" for reviewing such transactions.
"Lots of considerations are weighed in connection with a recommendation, and the consensus was this was a transaction that should be approved," he said. "It was something that went through our normal process. It's one that takes into account matters of national security, takes into account concerns about port security. And for a variety of reasons, the consensus was that this was a transaction that should be approved."
Members of Congress continued to assail the approval of the deal by the Committee on Foreign Investments in the United States. The committee, part of the Department of Treasury, reviews takeovers and mergers involving foreign companies and can recommend a deal be disallowed if it threatens national security.
At a packed news conference at the Port Newark offices of the Port Authority of New York and New Jersey, Sen. Robert Menendez (D-N.J.) cited the UAE's history as an operational and financial base for the hijackers who carried out the attacks of Sept. 11, 2001.
In addition, he contended the UAE was an important transfer point for shipments of smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani scientist.
"God, if you have a country that is not doing internally what it should be to prevent the transfer of nuclear parts, we're going to give that country operation of the major ports of this nation?" Menendez asked. "I think not."
"It needs to be stopped by the president, first and foremost. Either freeze the deal or negate the deal," he said.
Two Republican governors -- George Pataki of New York and Robert Ehrlich of Maryland -- also questioned the administration's approval of the sale and said they may try to cancel lease arrangements at ports in their states.
"Ensuring the security of New York's port operations is paramount and I am very concerned ...," Pataki said in a statement. "I have directed the Port Authority of New York and New Jersey to explore all legal options that may be available to them in regards to this transaction."
Ehrlich, concerned about security at the Port of Baltimore, said he is "very troubled" that Maryland officials got no advance notice before the Bush administration approved an Arab company's takeover of the operations at the six ports.
The state of Maryland is considering its options, up to and including voiding the contract for the Port of Baltimore, Ehrlich said.
Menendez and Sen. Hillary Rodham Clinton (D-N.Y.) are co-sponsoring a bill that would prohibit foreign governments from operating U.S. ports.
Menendez drew a distinction between privately owned foreign companies who operate U.S. Port facilities, such as P&O, and companies like DP World, which are owned by foreign governments.
Menendez's statements resonated among workers at a facility where a banner reading "9-11 Never Forget" hangs from the main offices and many already worry about gaps in security.
As is the case at most U.S. ports, government inspectors at Port Newark are able to check only about 5 percent of the containers unloaded from arriving ships. Some experts warn such lapses could allow terrorists to sneak in weapons or other materials.
"Even now, sometimes I don't know what I'm pulling," said Oscar Marquez, a Jersey City truck driver who makes frequent stops at the port to pick up cargo unloaded from ships. "You want to turn this all over to these guys?"
Staff writer Mary Jo Patterson and the Associated Press contributed to this report.
© 2006 The Star Ledger
© 2006 NJ.com All Rights Reserved.
Reaction to Newark port deal is unprintable
On the waterfront, fear and loathing
Tuesday, February 21, 2006
BY BRIAN DONOHUE
On any day, the docks of a busy waterfront like Port Newark can be a place to hear some of the most colorful phrases the English language has to offer.
But yesterday was something special.
At the mention of the Bush administration's approval of the sale of port operations to a Dubai-based company, longshoremen, truck drivers, mechanics and waitresses gushed with harsh words.
"Horrendous. Scary and horrendous," said Tom DiDomenico, a longhoreman from East Hanover, uttering one of the few printable reactions by customers at the Port Eatery on Corbin Street in Newark. "I'm a big Republican and I think Bush has lost his mind."
The Bush administration last week approved a $6.8 billion deal that allows Dubai Ports World, a state-owned property of the United Arab Emirates, to take over the London-based Peninsular and Oriental Steam Navigation Co.
The sale would give DP World control of port operations at a terminal in Newark, a passenger terminal in New York, and facilities in New Orleans, Philadelphia, Baltimore and Miami.
Though the UAE is considered a U.S. ally, the FBI has concluded the 9/11 terrorists had financial ties to the country. UAE was one of three countries, along with Saudi Arabia and Pakistan, to recognize the Taliban as the official government of Afghanistan.
The country's record on terrorism has sparked criticism of the deal by members of Congress from both parties.
During a stop in Birmingham, Ala., yesterday, Attorney General Alberto Gonzales defended the deal and said the administration had a "very extensive process" for reviewing such transactions.
"Lots of considerations are weighed in connection with a recommendation, and the consensus was this was a transaction that should be approved," he said. "It was something that went through our normal process. It's one that takes into account matters of national security, takes into account concerns about port security. And for a variety of reasons, the consensus was that this was a transaction that should be approved."
Members of Congress continued to assail the approval of the deal by the Committee on Foreign Investments in the United States. The committee, part of the Department of Treasury, reviews takeovers and mergers involving foreign companies and can recommend a deal be disallowed if it threatens national security.
At a packed news conference at the Port Newark offices of the Port Authority of New York and New Jersey, Sen. Robert Menendez (D-N.J.) cited the UAE's history as an operational and financial base for the hijackers who carried out the attacks of Sept. 11, 2001.
In addition, he contended the UAE was an important transfer point for shipments of smuggled nuclear components sent to Iran, North Korea and Libya by a Pakistani scientist.
"God, if you have a country that is not doing internally what it should be to prevent the transfer of nuclear parts, we're going to give that country operation of the major ports of this nation?" Menendez asked. "I think not."
"It needs to be stopped by the president, first and foremost. Either freeze the deal or negate the deal," he said.
Two Republican governors -- George Pataki of New York and Robert Ehrlich of Maryland -- also questioned the administration's approval of the sale and said they may try to cancel lease arrangements at ports in their states.
"Ensuring the security of New York's port operations is paramount and I am very concerned ...," Pataki said in a statement. "I have directed the Port Authority of New York and New Jersey to explore all legal options that may be available to them in regards to this transaction."
Ehrlich, concerned about security at the Port of Baltimore, said he is "very troubled" that Maryland officials got no advance notice before the Bush administration approved an Arab company's takeover of the operations at the six ports.
The state of Maryland is considering its options, up to and including voiding the contract for the Port of Baltimore, Ehrlich said.
Menendez and Sen. Hillary Rodham Clinton (D-N.Y.) are co-sponsoring a bill that would prohibit foreign governments from operating U.S. ports.
Menendez drew a distinction between privately owned foreign companies who operate U.S. Port facilities, such as P&O, and companies like DP World, which are owned by foreign governments.
Menendez's statements resonated among workers at a facility where a banner reading "9-11 Never Forget" hangs from the main offices and many already worry about gaps in security.
As is the case at most U.S. ports, government inspectors at Port Newark are able to check only about 5 percent of the containers unloaded from arriving ships. Some experts warn such lapses could allow terrorists to sneak in weapons or other materials.
"Even now, sometimes I don't know what I'm pulling," said Oscar Marquez, a Jersey City truck driver who makes frequent stops at the port to pick up cargo unloaded from ships. "You want to turn this all over to these guys?"
Staff writer Mary Jo Patterson and the Associated Press contributed to this report.
© 2006 The Star Ledger
© 2006 NJ.com All Rights Reserved.
posted by Jones Lang LaSalle NJ News Blog at 2:53 PM
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