WHEREAS, the London-based firm of Peninsular and Oriental Steam Navigation Company was recently purchased by Dubai Ports World, a state-owned business in the United Arab Emirates; and

WHEREAS, Peninsular and Oriental Steam Navigation Company presently manages port operations in New York, New Jersey, Baltimore, New Orleans, Miami, and Philadelphia; and

WHEREAS, the Department of Homeland Security reviewed and approved of the takeover of contracts of the Peninsular and Oriental Steam Navigation Company by the Dubai Ports World, including a contract relating to the port operations in the United States; and

WHEREAS, the news of the approval of the deal has raised considerable concern and consternation in the United States over security of our ports; and

WHEREAS, the major concerns over management of United States ports by an Arab country relate to the possibility of infiltration by terrorists through the ports into the United States and the specter of smuggling in weapons of mass destruction; and

WHEREAS, American ports should be managed by United States companies; and

WHEREAS, although the United Arab Emirates is a friend and ally of the United States, the possibility of nefarious terrorist activity against the United State at our ports is disturbing; and

WHEREAS, our ports are very vulnerable to attack and the United States needs to do more to protect and secure our ports; and

WHEREAS, it has been reported that one American company stevedoring company has already filed suit in a Florida court to challenge this deal; and

WHEREAS, United States Senator Daniel K. Inouye has criticized the agreement, saying, "Does this administration-approved takeover by a foreign entity mean we will be putting up signs at the ports ... that declare, terrorists welcome?"; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, that the President of the United States and the United States Congress are requested to delay or reject the port management agreement with Dubai Ports World in particular and with all foreign-owned entities in general, as American ports should be managed by American companies; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the President of the United States, Majority Leader of the United States Senate, Minority Leader of the United States Senate, Speaker of the United States House of Representatives, Majority Leader of the United States House of Representatives, Minority Leader of the United States House of Representatives, Hawaii's Congressional delegation, and the Governor.

Report Title:

U.S. Ports Management by Arab Company