Mikulski Requests Investigation into P&O Ports Sale

Mikulski Requests Investigation into P&O Ports Sale

Senator Barbara A. Mikulski (D-Md.) sent a letter yesterday to Department of the Treasury Secretary John Snow requesting a full investigation into the acquisition of Peninsular and Oriental Steamship Navigation Co. (P&O) Ports by DP World, which is owned and controlled by the government of Dubai, United Arab Emirates (UAE). P&O Ports of North America operates the Seagirt Marine Terminal and Dundalk Marine Terminal, both in Baltimore.

"Our country's ports are vital to our national security, military capability, and economy. The Administration has a responsibility to ensure that foreign control over certain port operations is thoroughly scrutinized," said Senator Mikulski. "The American public deserves no less."

The text of the letter is below:

February 16, 2006

Secretary John. W. Snow
Department of Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220

Dear Secretary Snow:

I am writing to ask that you direct the Committee on Foreign Investment in the United States (CFIUS) to conduct a 45-day investigation into the acquisition of Peninsular and Oriental Steamship Navigation Co. (P&O) by DP World, a company owned and controlled by the Government of Dubai, United Arab Emirates (UAE).

This transaction will result in foreign government control of P&O Ports North America, the largest port operator on both the East Coast and Gulf Coast of the United States, which I understand has a contract with the Maryland Port Administration to operate Seagirt Marine Terminal and Dundalk Marine Terminal in Baltimore.

Federal law requires the President or his designee to investigate the national security impacts of a foreign acquisition it the acquisition "could result in control of a person engaged in interstate commerce in the United States that could affect the national security of the United States." (50 USC App. §2170). I understand that the President has delegated this investigative authority to the CFIUS within the Department of Treasury.

The Port of Baltimore is an economic engine for the State of Maryland. In 2004, the Port provided nearly 19,000 direct jobs, $2.4 million in personal wages and salaries, and $2 billion in business revenues. The Port currently ranks first in the country for roll-on/roll-off cargo, and ranks second in automobile importing and exporting.

Our country's ports are vital to our national security, military capability, and economy. Nearly 95 percent of all goods imported to the U.S. arrive through our ports. The Administration has a responsibility to ensure that foreign control over certain U.S. port operations is thoroughly scrutinized. The American public deserves no less.

http://mikulski.senate.gov/record.cfm?id=251707