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The New Media Department of The Post and Courier

WEDNESDAY, FEBRUARY 22, 2006 12:00 AM

S.C.'s important port control

The shocking takeover of six of this country's major ports by a United Arab Emirates company says how fortunate it is that South Carolina's major ports aren't being operated under the kind of landlord arrangement that has resulted in such questionable new foreign control. It also should serve to strengthen the resolve to keep the SPA directly in charge of the state's ports.

That control currently is the subject of a suit before the state Supreme Court which should resolve whether the SPA is correct in its assertion that it has the sole constitutional authority to operate the state's port facilities. The issue arose after Jasper County officials began vying with the SPA to operate a port there. Under the Jasper proposal, the county would lease the port operation to a private company.

It's the landlord concept that has led to the current controversy involving ports in New York, New Jersey, New Orleans, Baltimore, Miami and Philadelphia. Few eyebrows were raised when they were being operated by a British company, Peninsular and Oriental Steam Navigation Co. But the purchase of that company by the United Arab Emirates' Dubai Ports World has raised alarms which now are being sounded by state governors and members of Congress. According to The Associated Press, critics note that some of the 9/11 hijackers used the UAE as an operational and financial base and also contend it was a transfer point for shipments of smuggled nuclear components.

The Bush administration's approval of the deal has resulted in bipartisan criticism. On Tuesday, according to the AP, Senate Republican leader Bill Frist joined those who are calling for the administration to put the approval on hold. If that isn't possible, the senator was quoted as saying he would introduce legislation to require a delay pending a more thorough review.

What's particularly startling is that the states involved apparently didn't reserve the right to approve any assignment of the lease to a new owner. The governor of New York was quoted as saying all legal options are now being explored to halt the deal. That speaks of too little control from the outset.

While the SPA has agreed to seek private investment in a new port facility in North Charleston, executive director Bernard S. Groseclose emphasizes the SPA "would maintain operating control of the terminal." Mr. Groseclose is among those who note the loss of U.S. shipping interests, including, in recent years, even the absence of local ownership of stevedoring companies. The current controversy, he notes, "is a very clear lesson of the need to maintain operating control over our facilities and not ceding it to outside, third parties that can be sold."

South Carolina has one of the few major ports in the country that doesn't operate under the landlord-tenant concept. In view of the increasing foreign dominance of the industry, it now should be clear how important it is to keep such sensitive, key assets in the hands of public officials who are accountable to the citizens of this state.


This article was printed via the web on 2/22/2006 12:06:27 PM . This article
appeared in The Post and Courier and updated online at Charleston.net on Wednesday, February 22, 2006.