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.