Under Pressure, Dubai Drops Port Deal Essay

685 Words Jan 24th, 2013 3 Pages
Giorgi Murusidze
Dr. Paul Wilson
MBA 580.60
November 2, 2010
Under Pressure, Dubai Drops Port Deal The Dubai Port World controversy began in February 2006 and rose to prominence as a national security debate in the United States. At issue was the sale of port management businesses in six major U.S. seaports to a company based in the United Arab Emirates, and whether such a sale would compromise port security. The controversy pertained to management contracts of six major United States ports. The purchaser was DP World, a state-owned company in the U.A.E. The contracts had already been foreign-owned, by Peninsular and Oriental Steam Navigation Company (P&O), a British firm taken over by DPW, completed in March 2006. Although
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First, these ports are strategic for the country, and it is better to be managed by the US Company. Second, more US citizens will be employed. Finally, the most important factor is security. The country will be safer when these ports are managed by Americans. The safety of the country and support of domestic companies could have influence on the reversal of the ports deal. The US public concerns did not have big influence on a business decision made by a Dubai company. More influence had the political pressure. However, public concern also played its role in this case. For example, people’s opinion was that foreign states, especially those related to terrorism in the past, could not be trusted with strategic American assets. Also, they thought that foreign countries should not have managerial responsibilities over ports due to divided loyalties and concerns over national independence. Accordingly, all these public opinions were reflected and expressed by the politicians whose pressure constrained Dubai Company to withdraw. Thinking that transportation takes place through a global network of companies is slightly incorrect. Ports are vulnerable to the entry of terrorists or illicit weapons because of the large number of containers that enter U.S. territory. Accordingly, no foreign government should be permitted to own such strategic assets. There are many business assets that can be owned by foreign companies and