Port Security Controversy
In 2006, when the British High Court gave its approval for Dubai Ports World to acquire the Peninsula and Orient Steam Navigation Company (P&O), then the world’s fourth largest ports operator, the Dubai based company also took possession of operation in 21 ports in the US. Initially, the Committee on Foreign Investment in the United States gave its blessing to the acquisition.
However, Port security Controversy soon erupted in Washington, DC. Anger was expressed in Congress over the fact that there had never been any discussion with the CFIUS about the ramifications of having an Arab-owned company being given access to a number of ports along the Atlantic seaboard and the Gulf coast.
The Port security Controversy came to a head in February 2006 when the then President, George W Bush, threatened that any legislation Congress tried to pass to block the Dubai Ports World deal would be immediately vetoed by him personally. Speaking to the press about the Port security Controversy, Bush claimed that not allowing the deal to go through would send out a negative message to allies and friends.
Later in February, in order to calm the tensions created by the Port security Controversy, Dubai Ports World announced that it would put off its takeover and place all operations it now owned on American soil into the hands of an American entity.
The issue was finally resolved after the US House of Representatives voted in favour of legislation to block the move, and Dubai Ports World disposed of its P&O interests, for an undisclosed sum, to Global Investment Group.