Dubai Ports World, a United Arab Emirates state-owned international port operator, has cleared its last major hurdle in acquiring the British firm Peninsular & Oriental Steam Navigation Co. P&O helps operate six major seaport facilities in the United States : New York, New Jersey, Baltimore, Philadelphia, Miami, and New Orleans. P&O shareholder’s agreed to accept DP World’s offer of ?3.9 billion ($6.8 billion), giving DP World a majority or near majority interest in these six port facilities. The deal will create the world’s third largest port operator with DP World operating 51 terminals in 30 countries. A bid war had been ongoing between DP World and rival Singapore -based PSA International, which is owned by Temasek, the investment agency of the Singaporean government. The sale price is the most ever paid for any port operation company.

This acquisition is part of a larger trend toward international ownership and global management of seaports. The US west coast has numerous foreign-owned ports and terminals; this is not a new phenomena. However, US lawmakers have been quick to express their concerns over the deal, citing potential national security threats generated by foreign owned US ports. Both Republicans and Democrats voiced opposition on several Sunday morning talk shows, expressing their intentions to support legislation blocking foreign companies from buying US port facilities. Congressman Peter King fears of an al-Qaeda infiltration through the Middle Eastern nation. Similarly, according to Senator Chuck Schumer, UAE has a “dubious record on terrorism” and is “a homeland security accident waiting to happen.” Finally, Senator Barbara Boxer sophomorically opposes the sale to “any foreign company, period,” an argument that holds little weight in an increasingly global community. With November 2006 congressional elections quickly approaching and 2008 presidential elections seemingly in full gear, both parties wish to portray the image of ‘strong on national defense and homeland security.’ Critics of the deal cite the UAE’s history as an operational and financial base for Islamic terrorists, including several who participated in the 9/11 attacks . Financially, the UAE has been a conduit for terrorist financing, with financiers abusing the local banking system to help fund the attacks. Additionally, lawmakers contend the UAE was an important transfer point for shipments of smuggled nuclear components to Iran , North Korea , and Libya by Pakistani nuclear scientist AQ Khan.