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Mideast firm sells U.S. port operations

The deal, which includes Tampa docks, may end a heated political debate over port ownership.

By ASSOCIATED PRESS
Published December 12, 2006

WASHINGTON - Dubai Ports World, the company that ignited a political firestorm this year with its planned takeover of major U.S. port operations, has agreed to sell those operations to AIG Global Investment Group.

The company announced the deal Monday. The U.S. operations at six major U.S. seaports in New York-New Jersey, Philadelphia, Baltimore, Miami, Tampa and New Orleans were valued at about $700-million, but DP World did not disclose the sales price.

The deal also involves stevedoring operations in 16 locations along the eastern seaboard and Gulf Coast and a passenger terminal in New York City.

"While we are disappointed to be exiting the U.S. market, the price we received was fair," Sultan Ahmed Bin Sulayem, the chairman of DP World, said in a statement announcing the deal.

One of the loudest critics of the original deal said he was pleased and expected the deal to clear the few regulatory hurdles that remain.

"This is an appropriate final chapter to the book on the Dubai Ports World deal," said Sen. Charles Schumer, D-N.Y. "This is very likely to receive broad support in Washington and throughout America."

After acquiring the U.S. port operations, DP World kept them under control of a North American subsidiary. The sale announced Monday means the same local managers should keep running cargo operations at Tampa's public docks, said the Tampa Port Authority.

"It's just an ownership change, a name change as far as we're aware," said authority spokesman Andy Fobes.

AIG Global Investment Group is an asset-management firm with more than $635-billion in assets. Managing director Christopher Lee said the company is "very committed to ensuring that the company continues to be one of the industry leaders in setting standards for port security."

DP World is based in the United Arab Emirates and is the largest marine terminal operator with 51 terminals in 24 countries.

The Bush administration had agreed in January to allow DP World to acquire the U.S. port operations, but as soon as the deal became public, it was fiercely attacked by members of both political parties.

Critics of DP World cited the country's history, noting that some of the money that financed the Sept. 11, 2001, terror attacks moved through its banking system, and the government's past support of Afghanistan's Taliban government before the 2001 attacks.

As a result of the public pressure, DP World ultimately agreed to sell off the U.S. assets.

The Department of Homeland Security, which had tried to defend the initial DP World acquisition, had no comment Monday, agency spokesman Russ Knocke said.

Times staff writer Steve Huettel contributed to this report.

[Last modified December 12, 2006, 00:09:00]