Dubai Ports World said it asked for an additional 45-day review of its takeover of terminal operations at six key US ports in order to allay national security concerns.

“We are confident the further review by CFIUS (Committee on Foreign Investment in the US) will confirm that DP World’s acquisition of P&O’s US operations does not pose any threat to America’s safety and security,” Dubai Ports chief operating officer Ted Bilkey said, according to a Reuters report. Bilkey’s statement came as Vice Admiral Patrick Walsh, Commander, US Naval Forces Central Command, met DP World chairman Sultan bin Sulayem on board US military ship Vicksburg during the opening of a new state-of-the-art DP World-managed oil terminal facility in Djibouti.
The review request, made jointly with the US unit of British company P&O, gives the Bush administration time to convince members of Congress not to block the deal.
The White House said it was pleased that the company had reached a middle ground with Congress, but added that the purchase had already been closely scrutinised for security concerns.
“We believe, however, the additional time and investigation at the request of the company will provide Congress with a better understanding of the facts, and that Congress will be comfortable with the transaction moving forward once it does,” White House spokesman Scott McClellan said in a statement.
Many lawmakers fear the Dubai-based port operator could be a Trojan horse for militants wanting to attack the US. They also were outraged that CFIUS approved the deal giving the state-owned company control of terminals at the six ports without conducting an additional 45-day review to thoroughly examine potential national security concerns. Dubai Ports had said earlier it would proceed with its $6.85 billion takeover of P&O on March 2 — making it the world’s third-largest port operator — but not immediately assume management of the US port terminals.
President George W Bush has strongly backed the ports deal and threatened to veto any legislation blocking it.
But Bush national security adviser Stephen Hadley said on CNN’s ‘Late Edition’ it was clear members of Congress needed more time to understand and review the deal.
“We’re confident, the president is confident, when Congress really understands the transaction they will conclude as he did, it’s the right thing to do,” Hadley said.
The White House says the UAE is a staunch ally in the US war on terrorism and has worked to close the loopholes that allowed Al Qaeda operatives to use it as a financial and logistical hub before the September 11 attacks.
The companies’ decision to ask for an extended review followed intense consultation with congressional leaders.
DP World CEO Mohammed Sharaf said the past 12 months had been marked by extraordinary excitement, expansion and change for DP World – and that looked set to continue.
“We have quickened the pace of expansion with the aim of making sure we are where our customers need us to be, building on the excellent reputation for quality service established by our UAE region at our Dubai ports, earned through listening and responding to customers.
“This is the approach we are continuing to take as we grow beyond our home borders.”
DP World was created in 2005 by successfully integrating Dubai Ports Authority (DPA) and DPI Terminals.
Over the course of the past year, DP World has continued its expansion by adding terminals in Yemen, Turkey, UAE, India, and China, increasing its current capacity of 20 million teu to an estimated 42 million teu over the next five years.