Ports of Call (Abridged)

Let me weigh in on the Dubai port management issue - and I'm doing this without extensive research but having spent a considerable amount of time in the civil infrastructure business - so please allow me a few minutes of your time. (And for additional journalistic fall-out please go here).

First of all let's look at the facts - a British company called Peninsular & Oriental Steam Navigation company Ltd (P&O) decided to sell their company to a Dubai government owned company. Part of P&O's business was to manage six of the US's ports. What typically happens when mergers and acquistions occcur is that clients may have rights as to the transfer of such sale. Such contract terms are common. Such that when this sale was occuring the US did their due diligence as their approval would be necessary for the approval of the sale.

The UAE (United Arab Emeriates) is probably one of the most progressive (and isn't that what we want them to do - did you see Syriana? George Clooney?) Arab countries. The Emeriates are made of up of a collection of Arab countries dotting the eastern side of the Saudi Arabian peninsula including Dubai, Bahrain and others.

I should probably note here that 21 years ago I worked in Saudi Arabia for a year and a half. Saudi Arabia was an arm pit - but known to many as one of the friendliest to our country government-wise. But it sucked being there because there was no fun to be had. Meaning they are fairly fundamentalist and women have to be covered at all times and you couldn't drink. But they welcomed our workers in there to build all of their stuff. By the way that's the way the world works. It's that part of the world most of the Arabs do not go to University or whatever and labor must be shipped in from all sorts of places - Indians, Pakistani's, Filipinos et al.

Well anyway - that's sort of another story - but what everybody knew was that you could drink in Dubai and Bahrain and other Arab places - they were way much cooler. So much so that eventually they built a causeway (bridge) to the island county of Bahrain so that workers could spend weekends over there getting sauces legally. This to me is the sign of a progressive Arab country. Meaning they are not overly fundamentalist. Heck , they may even let women drive.

Ok - again - this is sort off the point here - but you all should know that in the Arab world these are sort of known as the good guys - they understand commerce. Dubai actually believes in tourism! This is not your normal gulag.

Such that when the transaction came down I do believe the Bush admistration and others felt this was not in any way untoward or "dangerous". Companies with foreign ties are doing alot of business in America and have been for years. This is not overly extraodinary. Your everyday Joe does not understand this and of course is up in arms about this - but this is not that abnormal. In fact the number two company in this acquisition process was a Singapore-owned company which does have a Muslim population as well.

Having said that this was handled extremely poor from a political point of view. With the adminstrations numbers down and in an election year many in Congress would take this bait and make politcal hay out of it - which is what has happened. The administration should have realized as much and laid the groundwork for its approval if it really wanted as much. But it didn't - and this rock n' roll Republican can admit as much. It was a real botch job.

Having outside management to operate ports is not such a bad thing. Outsourcing (which has become such a bad word but it really isn't) is frankly a cost effective way in letting qualified firms do what they do based on their inherent economies of scale. For example many companies, and some foreign owned, now operate local water and wastewater services in a more economical way than if the local entity operated it. This provides savings to the local entity instead of raising taxes. And again no one "owns" these facilties - they just manage them under an extensive service contract that lays out all of the detail of the realationship - its called a public/private partnership - and it is good.

In fact one of the best ways to keep our "enemies" at bay is to do business with them (although the UAE isn't one of them)- then they won't want to fuck anything up for fear of losing business - I'm sure that's how Dubai would work.

By the way did you know that the Pittsburgh airport, for one example, is managed by a British company named BAE? I liked the comment one national columnist gave that there are probably more angry and disaffected Arabs in the UK (train bombings) then the UAE? And what if an Arab British citizen was in management at BAE? What may he do? Cue the Twilight Zone music.

Now that the Republicans have currently put a wrench in this I do not think that is necesassarily a good thing. Eveybody knee-jerked here - the President handled it badly and everyone is piling on to what to me is a PR issue not a policy issue - and now we will lose foreign investment which is also good for the country.

It reminds me when Japan was buying up real estate in the 80's and when they bought Rockefeller Center everyone went "oh no" they will own us. People, debt is good - investment in our assets is good - its what makes the world go around - and I remember at the time thinking well the Japs bought at the top of the market, suckers.

They later sold the Rock at a loss.

That's enough for now. Do you know they now want to give this stuff to Haliburton. I'll post on that next time. Who is more evil? Dubai or Haliburton?

I'd love a friggin' liberal to answer that question.