News Release

WASHINGTON - U.S. Rep. John Spratt (D-SC) has co-sponsored a bill to give Congress oversight of the investigation into the acquisition of P&O Worldwide by Dubai Ports (DP) World.

Spratt would also vote for a bill to prevent the deal from moving forward if it is brought to the House floor.

Opposition to the sale has caused DP World of the United Arab Emirates to announce that it would submit to a 45-day investigation by the Committee on Foreign Investment in the United States.

“Seaports are gateways, and it’s only natural to want control of them. Ten million containers move through these gateways every year, and far too few are inspected. If a nuclear weapon were packed into some or even one of those containers, the consequences could be catastrophic. And it’s a lot easier to imagine this happening than a 757 jetliner slamming into a skyscraper,” said Spratt.

“In addition to cargo coming in, tons of cargo goes out,” said Spratt, “and in military emergencies, that includes tanks, trucks, artillery, and other out-sized and heavy equipment. Those who control the cranes, conveyors, and terminals control the pace at which this cargo is moved. That’s another reason this is a serious security concern.”

Spratt said the bill would require the investigation to include (1) a Coast Guard assessment of foreign ports where DP World operates, (2) background checks of DP World officers and security personnel, (3) an evaluation of the impact on port security by DP World’s control of U.S. port operations, and (4) consultation among the Coast Guard, Customs, and Border Protection, the Secretary of Homeland Security and State and local officials, regarding the impact on national security of DP World operations at affected U.S. ports.

Following the 45-day review, the bill would require a report to Congress within 15 days providing detailed findings of the investigation and a Presidential determination. Congress would have 30 days to reverse the President’s approval by legislation.

The bill Spratt sponsors has bipartisan support, “which indicates,” said Spratt, “a widespread concern in Congress that the Administration’s Foreign Investment Committee made a quick and inadequate review, and did not really ask the over-arching question:  Are we weakening control over the gateways to our country?”

Spratt is the second-ranking Democrat on the House Armed Services Committee, which held a day-long hearing on DP World’s acquisition last week.  At the hearing, an independent panel suggested that DP World should be made to install scanners and radiation detection devices in all of its overseas terminals, so that 100% of all containers could be inspected before being shipped to this country and a digital image transmitted to the United States. Hutchison Ports, a firm similar to DP World, is testing such a system in Hong Kong.  In reply to questions raised by Spratt, DP World stated that it would install such a system, so long as it could be paid for by levies on each container.

“The fact that the Foreign Investment Committee did not even explore means of enhancing security or use its leverage to extract such commitments says a lot about its lax approval,” said Spratt.

The proposed acquisition of the British company P&O by Dubai-owned DP World would affect operations at six major east-coast ports: New York, Newark, Philadelphia, Baltimore, Miami, and New Orleans.

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