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Marine Log

March 9, 2006

DP World to cede control of U.S. port activities

"Because of the strong relationship between the United Arab Emirates and the United States and to preserve that relationship, DP World has decided to transfer fully the U.S. operation of P&O Operations North America to a United States entity," DP World's chief operating officer, Edward H. Bilkey, said in a statement that was read out on the Senate floor today by Senator John Warner, R-Va., Chairman of the Senate Armed Services Committee and a member of the Senate committee on Homeland Security and Governmental Affairs.

Warner read out the statement as Congressional efforts to block the deal continued.

Earlier in the day, DP World issued a London Stock Exchange announcement today saying that it had completed the acquisition of P&O and that P&O's shares had now been delisted.

The deal makes DP World a top three global port operator, with 51 terminals in 30 countries, across 5 continents. DP World will have a total capacity in excess of 50 million TEU per year.

In the London announcement, Mohammad Sharaf, Chief Executive, DP World, said only that "a review of our operations in the United States continues and we look forward to a timely resolution of any issues. We will continue to hold our U.S. operations separate while this process continues."

Senator Warner's announcement came after Congressional Republican leaders this morning reportedly told Bush that his efforts to save the deal would fail.

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