IRmep Questions and Answers about the Deal
Question: Why is DP World suddenly interested in US ports?
Answer: It makes a lot of sense that DP World is looking to operate directly in the US. According to the National US Arab Chamber of Commerce 2006 forecast, US exports to UAE will soar to $10.19 billion this year. If we apply the US Department of Commerce “Rule of Thumb” calculation of 17,000 jobs per billion dollars of US exports, the UAE demand alone will sustain 173,000 US jobs this year.The Middle East logistics industry, according to independent industry forecasts, is expected to grow at over 25 per cent annually.
Question: Isn’t the DP World acquisition a security threat?
Answer: DP World is in the logistics business and like other shippers will not be wholly responsible for security at the ports it operates in the US. However, it has worked closely with the United States and foreign governments in securing port facilities all over the world, including the Port of Aden in Yemen. You may recall that this is the port where terrorists attacked the USS Cole. Since the DP World acquisition, Aden is now has among the lowest Lloyd’s of London insurance rates for terrorist related incidents.
US Customs and Border Protection (CBP) partners with UAE on the issue of port security. The Emirates was the first Arab country to join CBP’s Container Security Initiative—a program which places CBP officers at UAE ports to identify and pre-screen cargo headed for the US. When the Gulf nation signed the deal in December 2004, US Ambassador to the UAE Michele Sison said, “They are now partnering with the United States and are a leader in protecting the global trading system.”
Full Policy Research Note (HTM) (PDF)