A Dubai-owned company has abandoned its plans for managing American ports. ''DP World will transfer fully the U.S. operations ... to a United States entity,'' H. Edward Bilkey, the company's top executive, said, according to the AP.
Hours earlier, Republican House and Senate leaders told the president that Congress was to block Dubai Ports World's plans.
The White House voiced satisfaction with the outcome. ''It does provide a way forward and resolve the matter,'' said Scott McClellan, the White House press secretary. ''We have a strong relationship with the UAE and a good partnership in the global war on terrorism, and I think their decision reflects the importance of our broader relationship.''
Dubai Ports World on Thursday finalized its $6.8 billion purchase of Peninsular & Oriental Steam Navigation Co., the British firm that through a U.S. subsidiary runs major port operations in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia. It also plays a lesser role in dockside activities at 16 other American ports.
The plan was disclosed last month, setting off a political storm in the United States as some politicians claimed it was too risky to let an Arab company handle US ports.
