Thursday, March 2

Congressional Action:UAE DP World Port Deal - "Dubai Hysteria"

How to look like an idiot, Congress Edition.

Step one - Make a descission about an issue before investigating any of the facts.

Step two - Waste Congress's time dealing with the issue instead of doing any homework about it.

Hearing on DPW acquisition - On March 2, the Senate Committee on Banking, Housing, and Urban Affairs will conduct a Hearing on Dubai Ports World’s acquisition of P&O. (3/1/06).

Hearing on national security implications of DPW acquisition - On March 2, the House Armed Services Committee will conduct a Hearing on the national security implications of the Dubai Ports World acquisition of P&O Ports. (3/1/06).

1. Bill introduced re investigation of port facility acquisition - Representative King (R-NY) introduced the Foreign Investment Security Improvement Act of 2006 (H.R. 4807) to require an investigation under the Defense Production Act of 1950 of the acquisition by Dubai Ports World of the Peninsular and Oriental Steam Navigation Company, and for other purposes. This is a companion bill to S. 2333, introduced earlier by Senator Schumer (D-NY). (2/28/06).

2. Bill introduced re acquisition review process - Representative Foley (R-FL) introduced a bill (H.R. 4813) to amend the Defense Production Act of 1950 to improve national security and clarify congressional intent with respect to the review process for certain mergers and acquisitions, and for other purposes. (2/28/06).

3. Bill introduced to suspend foreign acquisitions - Representative Garrett (R-NJ) introduced a bill (H.R. 4814) to amend section 721 of the Defense Production Act of 1950 to suspend all proposed mergers, acquisitions, of takeovers by foreign
persons until certain determinations are made. (2/28/06).

4. Bill introduced re acquisitions by entities controlled by foreign governments - Representative Hayworth (R-AZ) introduced a bill (H.R. 4817) to prohibit entities owned or controlled by foreign governments from carrying out operations at seaports in the United States. (2/28/06).

5. Bill introduced re acquisition investigations - Representative Markey (D-MA) introduced a bill (H.R. 4820) to amend the Defense Production Act of 1950 to strengthen the requirements relating to investigations under such Act, and for other purposes. (2/28/06).

Resolution introduced re CFIUS review - Representative Harman (D-CA) introduced a joint resolution (H.J. Res. 79) disapproving the results of the review conducted by the Committee on Foreign Investment in the United States (CFIUS) into the purchase of Peninsular and Oriental Steam Navigation (P&O) by Dubai Ports World (DP World). (2/28/06).

6. Bill introduced to ensure security of US ports - Senator Menendez (D-NJ) introduced a bill (S. 2334) to ensure the security of United States ports, and for other purposes. (2/28/06).

7. Bill introduced re acquisition investigation requirements - Senator Bayh (R-UT) introduced a bill (S. 2335) to clarify the role of the Director of National Intelligence, amend the Defense Production Act of 1950 to clarify the notification and investigation requirements, and for other purposes. (2/28/06).

8. Bill introduced to prohibit DPW acquisition - Senator Dorgan (D-IL) introduced a bill (S. 2341) to prohibit the merger, acquisition, or takeover of Peninsular and Oriental Steam Navigation Company by Dubai Ports World. (2/28/06).

9. Bill introduced to ensure security of US ports - Representative Wasserman Schultz (D-FL) introduced the Port Security Act of 2006 (H.R. 4842) to ensure the security of United States ports, and for other purposes. This bill, if adopted, would prohibit leases of US port facilities by foreign govern-owned entities and increase the transparency of mandatory investigations under the Defense Production Act of 1950. (3/1/06). - Added 6 March

10. Bill introduced re port security - Senator Schumer (D-NY) introduced the Foreign Investment Security Improvement Act of 2006 (S. 2333) to require an investigation under the Defense Production Act of 1950 of the acquisition by Dubai Ports World of the Peninsular and Oriental Steam Navigation Company, and for other purposes. This bill, if adopted, would require a new investigation of the proposed acquisition by Dubai Ports World. (2/27/06). - Added 6 March

11. Bill introduced re scanning of shipping containers - Representative Nadler (D-NY) introduced a bill (H.R. 4899) to prohibit the entry of ocean shipping containers into the United States unless such containers have been scanned and sealed before loading on the vessel for shipment to the United States, either directly or via a foreign port. (3/8/06). - Added 10 March

12. Bill introduced re requirements for ownership of critical infrastructure - Representative Hunter (R-CA) introduced a bill (H.R. 4881) to promote the national defense by establishing requirements for the ownership, management, and operation of critical infrastructure in the United States, and for other purposes. (3/7/06). - Added 10 March

13. Bill introduced re acquisitions of persons engaged in interstate commerce - Representative Berkley (D-NV) introduced a bill (H.R. 4885) to amend the Defense Production Act of 1950 to prohibit acquisitions, mergers, or takeovers of persons engaged in interstate commerce in the United States by entities controlled by or acting on behalf of foreign governments that do not recognize countries that are member states of the United Nations, participate in boycotts against countries that are friendly to the United States, or provide support for international terrorism. (3/7/06). - Added 10 March

14. Bill introduced re changes to CFIUS - Senator Dodd (D-CT) introduced a bill (S. 2380) to add the heads of certain Federal intelligence agencies to the Committee on Foreign Investment in the United States, to require enhanced notification to Congress and for other purposes. (3/7/06). - Added 10 March

15. Bill introduced re resubmittal of security plans - Representative LoBiondo (R-NJ) introduced the Maritime Terminal Security Enhancement Act of 2006 (H.R. 4880) to direct the Commandant of the Coast Guard to require that a security plan for a maritime facility be resubmitted for approval upon transfer of ownership or operation of such facility, and for other purposes. The bill, if adopted, would also require that the qualified individual identified in the security plan be a US citizen. (3/6/06). - Added 10 March

16. Bill introduced re foreign control of critical infrastructure - Senator Coleman (R-MN) introduced the Foreign Investment Transparency and Security Act of 2006 (S. 2374) to amend the Homeland Security Act of 2002 to limit foreign control of investments in certain United States critical infrastructure. The bill, if adopted, would require that the US subsidiary of foreign corporations owning US critical infrastructure have a board of directors with a majority of US citizens and that the chief security officer be a US citizen. (3/6/06). - Added 10 March

17. Bill introduced re citizenship of port facility security officers - Representative Doolittle (R-CA) introduced a bill (H.R. 4833) to require that only United States persons may control security operations at seaports in the United States or enter into agreements to conduct such security operations. (3/1/06). - Added 10 March

18. Bill introduced to prohibit foreign governments from conducting US port security - Representative Shaw (R-FL) introduced a bill (H.R. 4839) to prohibit entities owned or controlled by foreign governments from conducting certain operations at seaports in the United States, and from entering into agreements to conduct such operations. (3/1/06). - Added 10 March

19. Bill introduced to suspend foreign acquisitions - Representative Garrett (R-NJ) introduced a bill (H.R. 4814) to amend section 721 of the Defense Production Act of 1950 to suspend all proposed mergers, acquisitions, of takeovers by foreign persons until certain determinations are made. (2/28/06). - Added 10 March.

20. Bill introduced re acquisitions by entities controlled by foreign governments - Representative Hayworth (R-AZ) introduced a bill (H.R. 4817) to prohibit entities owned or controlled by foreign governments from carrying out operations at seaports in the United States. (2/28/06). - Added 10 March

21. Bill introduced to ensure security of US ports - Senator Menendez (D-NJ) introduced the Port Security Act of 2006 (S. 2334) to ensure the security of United States ports, and for other purposes. (2/28/06). - Added 10 March

22. Bill introduced to prohibit DPW acquisition - Senator Dorgan (D-ND) introduced a bill (S. 2341) to prohibit the merger, acquisition, or takeover of Peninsular and Oriental Steam Navigation Company by Dubai Ports World. Note: when I first reported this bill in an earlier edition of this newsletter, I erroneously stated that Senator Dorgan was from Illinois. My apologies to both states. (2/28/06). - Added 10 March

23. Bill introduced re acquisitions by a foreign person - Representative Maloney (D-NY) introduced the Committee on Foreign Investment in the United States Reform Act (H.R. 4915) to amend section 721 of the Defense Production Act of 1950 to implement certain recommendations relating to the review of certain mergers, acquisitions, or takeovers by or with any foreign person, and for other purposes. (3/9/06). - Added 13 March

24. Bill introduced to require Congressional notification of certain acquisitions -Representative Barrow (D-GA) introduced the Protect America First Act of 2006 (H.R. 4917) to amend the Defense Production Act of 1950 to require notification to congress after receipt of written notification of proposed or pending mergers, acquisitions, or takeovers subject to investigation under such Act, and for other purposes. (3/9/06). - Added 13 March

25. Bill introduced to enhance effectiveness of acquisition investigations -Representative Sabo (D-MN) introduced the Foreign Investment National Security Review Act of 2006 (H.R. 4929) to amend section 721 of the Defense Production Act of 1950 to enhance the effectiveness of the investigations of certain mergers, acquisitions, and takeovers for national security implications, and for other purposes. (3/9/06). - Added 13 March

26. Bill introduced re port operator cause of action - Senator Lautenberg (D-NJ) introduced the Local Port Security Act of 2006 (S. 2367) to provide a cause of action for United States port operators with respect to the potential change of ownership of a terminal operator to a foreign entity, and for other purposes. (3/3/06). - Added 13 March (My opinion here)

27. Bill introduced re authority to review acquisitions by foreign entities - Senator Collins (R-ME) introduced a bill (S. 2400) to transfer authority to review certain mergers, acquisitions, and takeovers of United States entities by foreign entities to a designee established within the Department of Homeland Security, and for other purposes. (3/13/06). - Added 15 March

28. Bill introduced re investment by foreign entities - Representative Turner (R-OH) introduced a bill (H.R. 4959) to impose limitations on investment and certain operations by foreign entities in the United States. (3/14/06). - Added 16 March

29. Bill introduced to limit foreign investments - Senator Coleman (R-MN) introduced a bill (S. 2410) to amend the Homeland Security Act of 2002 to limit foreign control of investments in certain United States critical infrastructure. (3/14/06). - Added 16 March

30. Bill introduced re critical infrastructure - Senator Biden (D-DE) introduced a bill (S. 2412) to address homeland security issues relating to first responders, the Federal Bureau of Investigation, the use of technology, Federal, State, and local coordination, and critical infrastructure, and for other purposes. (3/14/06). - Added 16 March

31. Bill introduced re port operations contract moratorium - Representative Jackson-Lee (D-TX) introduced a bill (H.R. 4977) to place a 2-year moratorium on certain contracts to conduct port operations in the United States, and for other purposes. (3/16/06). - Added 27 March

32. Bill introduced re study of seaport security operations - Representative Jackson-Lee (D-TX) introduced a bill (H.R. 4978) to require the Comptroller General to conduct a study on the extent to which security operations at United States seaports are managed by nationals of foreign countries and other related matters. (3/16/06). - Added 27 March

33. Bill introduced re investment by foreign entities - Representative Turner (R-OH) introduced the Reciprocity and Fairness in Foreign Investment Act (H.R. 4959) to impose limitations on investment and certain operations by foreign entities in the United States. (3/14/06). - Added 27 March

34. Bill introduced to limit foreign investments - Senator Coleman (R-MN) introduced the Foreign Investment Transparency and Security Act of 2006 (S. 2410) to amend the Homeland Security Act of 2002 to limit foreign control of investments in certain United States critical infrastructure. (3/14/06). - Added 27 March

Senator Schumer, where is your Port Hysteria Bill?

(List from "Haight’s Maritime Items" a daily email summary of maritime news from The Law Firm of HOLLAND & KNIGHT.)

Bills introduced concerning the security threat of the National Shipping Company of Saudi Arabia Operating Port Terminals in the US: 0

Bills introduced concerning the security threat of the National Shipping Company of Saudi Arabia docking Saudi-Flag cargo ships with Saudi Arabian seafarers in the US: 0

Bills introduced concerning the security threat of Communist China Operating Port Terminals in the US: 0

Bills introduced concerning the security threat of UAE-based Emerates Airlines operating a cargo terminal at JFK Airport: 0

Last night in the news they were interviewing people who work in the ports. They interviewed a longshoreman, some exectives who are operating the port now, Customs, and the Coast Guard. All of them explained the changes this deal has for them and the port itself and none of them had any concerns. As the port employees stated, the port terminal operators have been taken over before, but none of their jobs have been effected. Even the longshoreman stated that this does not effect him at all, despite his own union telling everyone otherwise. Then again, unions are all pro-Democrat, despite many of their members being anti-Democrat.

Congress's actions are nothing more than pandering to the public and telling them what they want to hear instead of telling them the truth that this is a non-security-related issue.

If Congress wants to improve port security, then they'll get off their asses and try to figure out why their "Transportation Worker Identity Card" TWIC card program is stalled.

If Congress wants to understand the threats to the US through our transportation network, then they probably should their their own GAO reports. (General Accounting Office)

If you bother to read any of the GAO reports, take a look at this first one. It is a page-turner documenting the Government's current failure to issue Federal Identification documents to transport (airport, rail, trucking and seaport) workers.

GAO-05-106 Port Security: Better Planning Needed to Develop and Operate Maritime Worker ... - 09 Dec 04

DHS has not determined when it may begin issuing cards under any of the three proposed program alternatives—the federal, decentralized, or TWIC programs. Because of the delays in the program, some port facilities have made temporary security improvements while waiting for TSA’s maritime worker identification card system. 17 Others, recognizing an immediate need to enhance access control systems, are proceeding with plans for local or regional identification cards that may require additional investment in order to make them compatible with TSA’s system. For example, the state of Georgia is implementing a state-based maritime worker identification card, and ports along the eastern seaboard are pursuing plans for a regional identification card.

One reason that unions are against this program; Background checks:

While MTSA contains some general provisions relating to eligibility, DHS has not established which felony convictions should disqualify maritime workers as posing a terrorism risk. DHS has said it will likely base the maritime worker eligibility requirements on those used to screen hazardous material truck drivers but has not determined whether all workers will be required to meet the same requirements for a credential.

Lets just say that Longshoremen, seafarers, and truckers all have trouble avoiding trouble itself. (It doesn't meant that they are bad people!)

See page 15 of the report for a table of outstanding policy issues that need to be resolved prior to the program being able to issue workers proper IDs. Notice that the word "unknown" is the comment under estimated schedule for ALL but two of the items.

Also:
GAO-03-1154T Transportation Security: Federal Action Needed to Enhance Security Efforts - 9 Sept 03

GAO-06-76 Aviation Security: Federal Action Needed to Strengthen Domestic Air Cargo Security - 17 Oct 05

Finally, according to its Air Cargo Strategic Plan, TSA is also considering whether the agency's Transportation Worker Identification Credential(TWIC) Program would be beneficial to incorporate into the air cargo environment.102 The TWIC Program is intended to establish a uniform identification credential for 6 million workers who require unescorted physical or cyber access to secured areas of transportation facilities. The program is intended to combine standard background checks and new and emerging biometric technology so that a worker can be positively matched to his or her credential. As of June 2005, TSA had not yet determined whether the TWIC Program would be incorporated as part of the agency's overall effort to enhance air cargo security. We currently have an on-going review of the TWIC Program.

GAO-03-1137T Information Security: Challenges in Using Biometrics - 09 Sept 03

TSA has two current efforts examining the use of biometrics for access control. The Transportation Worker Identification Credential (TWIC) is designed to be a common credential for all transportation workers requiring unescorted physical access to secure areas of the national transportation system, such as airports, seaports, and railroad terminals. It will also be used to help secure logical access to computers, networks, and applications. The program was developed in response to ATSA and the Maritime Transportation Security Act of 2002 and will include the use of biometrics to provide a positive match of a credential for up to 6 million transportation workers across the United States.5 The TWIC program is designed as an identity authentication tool for individual facilities and to provide assurance that individuals with a TWIC card have undergone a threat assessment to ensure that they are not known terrorists. Individual facilities will be able to use the TWIC cards to control access to secure areas to only authorized individuals.

UAE DP World Port Deal is a Non-Issue - FFI
GAO search for "TWIC"

Here are more sites mentioning the Saudis presence in US Port Operations:

Saudi Shipping Company “Controls” 9 US Ports - Sweetness & Light
Hillary Has "Port Values" Except when it's Saudi Arabia or China - Gateway Pundit
An Organized Disinformation Campaign on the Port Deal - TKS

I suspect in about a week someone will point out all the foreign firms that handle loading cargo, meals and refreshments onto airplanes. Not only in the US, but also overseas. How hard would it be for a person to work for one of these firms and slip some weapons onto the plane? How about a bomb?

Thank you for flying Hyperbole Airlines - Varifrank

Update - Lloydslist Coverage:

'Dubai hysteria' hits Washington

AN avalanche of legislation fell on the US Congress yesterday in response to what some Washington insiders are calling “Dubai Hysteria”, with some bills seeking to block the DP World takeover of P&O's US facilities and others wanting to bar all foreign investment in US ports. Several key Capitol Hill sources told Fairplay that most of the bills are simply “pandering by publicity-hungry politicians”, but a couple stand a chance of success – probably those that seek review of the present approval process for such investments. The bills include the “Secure America’s Port Operations Act,” a bill from Florida republican Clay Shaw to ban foreign government-owned entities from operating US seaports; The “Foreign Investment Security Improvement Act” from republican Peter King of New York to require an inquiry into the DPW buyout; four separate proposed amendments to the Defense Production Act to suspend all such mergers, sales and acquisitions “until certain determinations are made”, to clarify congressional intent on the review process, to clarify notification and investigation requirements and to strengthen requirements relating to investigations; a bill to review the Committee on Foreign Investment in the US (CFIUS); another to ensure port security; and finally a bill from Illinois democrat Sen, Byron Dorgan to block the DPW takeover of P&O. - Full Story (subscription)

Lloyd's Register - Fairplay

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