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Corporate Control of Ports is the Problem
Published on Tuesday, February 21, 2006 by The Nation
Corporate Control of Ports is the Problem
by John Nichols
 

The problem with the Bush administration's support for a move by a United Arab Emirates-based firm to take over operation of six major American ports is not that the corporation in question is Arab owned.

The problem is that it that Dubai Ports World is a corporation. It happens to be a corporation that is owned by the government of the United Arab Emirates, or UAE, a nation that served as an operational and financial base for the hijackers who carried out the attacks of 9-11 attacks, and that has stirred broad concern. But, even if the sale of the ports to this firm did not raise security alarm bells, it would be a bad idea.

Ports are essential pieces of the infrastructure of the United States, and they are best run by public authorities that are accountable to elected officials and the people those officials represent. While traditional port authorities still exist, they are increasing marginalized as privatization schemes have allowed corporations -- often with tough anti-union attitudes and even tougher bottom lines -- to take charge of more and more of the basic operations at the nation's ports.

Allowing the nation's working waterfronts to be run by private firms just doesn't work, as the failure to set up a solid security system for port security in the more than four years since the September 11, 2001 attacks well illustrates. And shifting control of the ports of New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia from a British firm, Peninsular and Oriental Steam Navigation Co., to Dubai Ports World, is not going to improve the situation.

Unfortunately, the debate has been posed as a fight over whether Arab-owned firms should be allowed to manage ports and other strategic sites in the U.S. Media coverage of the debate sets up the increasingly ridiculous Homeland Security Secretary, Michael Chertoff -- who babbles bureaucratically about how, "We make sure there are assurances in place, in general, sufficient to satisfy us that the deal is appropriate from a national security standpoint" -- against members of Congress -- who growl, as U.S. Rep. Peter King, R-New York, did over the weekend about the need "to guard against things like infiltration by al-Qaida or someone else,"

There are two fundamental facts about corporations that put this controversy about who runs the ports in perspective.

First: Like most American firms, most Arab-owned firms are committed to making money, and the vast majority of them are not about to compromise their potential profits by throwing in with terrorists.

Second: Like most American firms, Arab-owned firms are more concerned about satisfying shareholders than anything else. As such, they are poor stewards of ports and other vital pieces of the national infrastructure that still require the constant investment of public funds, as well as responsible oversite by authorities that can see more than a bottom line, in order to maintain public safety -- not to mention the public good of modern, efficient transportation services.

John Nichols, The Nation's Washington correspondent, has covered progressive politics and activism in the United States and abroad for more than a decade. He is currently the editor of the editorial page of Madison, Wisconsin's Capital Times. Nichols is the author of two books: It's the Media, Stupid and Jews for Buchanan.

© Copyright 2006 The Nation

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