DPWorld downplays ports screening impact

Ports operator DP World said on Monday it foresaw little impact on its own trade after the US Congress passed a bill requiring countries to screen every US-bound cargo container within the next five years. DP World, owned by the Dubai government and the world’s third-largest container port operator, said that any issues arising from the legislation in the US will be resolved by negotiating governments before they are implemented.“We see little impact as the measure has a five year time horizon and the ability to extend the timing if necessary,” a DP World spokesperson commented.

“We welcome initiatives that improve security but it’s important that they don’t negatively impact the supply chain in terms of time and therefore costs,” the spokesperson added.The US Congress passed the bill last week requiring radiation screening within five years of 100% of US-bound maritime cargo before loading at foreign ports, but it allows the secretary of Homeland Security to extend the deadline two years at a time.It been criticised by many in the shipping industry worldwide as well as in the EU, the biggest trading partner with the US. European customs commissioner Laszlo Kovacs said on Thursday the move would disrupt trade without diminishing the terrorist threat. Shipping and trade woes Shipping industry experts also fear that poor countries may lose exports to the US and a disorder may also follow in world shipping if other countries start imitating US-style port security measures.Since the September 2001 terror attacks in New York and Washington, Americans fear they could become a target of a nuclear or chemical weapon that terrorists might smuggle into the US in a container.Washington has already deployed its Customs agents at several key foreign ports to selectively examine high-risk containers before they are loaded onto ships sailing for the US. It has roped in several strategically-located ports across the world into the US 'Container Security Initiative’ (CSI). The initiative launched in 2002 has been adopted by major container terminal operators like DP World, APM Terminals, PSA and Hutchison Whampoa.DP World’s participation in CSI has been successful, said the DP World spokesperson. Fourteen out of 42 of its terminals worldwide are part of the programme, the most of any terminal operator.The US Customs inspectors are armed with radiation monitors, chemical detectors and other equipment to check for dangerous cargo. But this measure is not seen as an obstacle to trade because it focuses only on suspicious containers without calling for every box to be screened.As part of CSI, DP World also said that it was co-operating with the United States on the Secure Freight Initiative, aimed at keeping radioactive weapons out of US-bound cargo, at one of the pilot location in the UK.“Security is important to ensuring the smooth flow of global commerce and we are looking to expand our participation in the programme to other countries in due course,” said the spokesperson.“Our learning from the pilot programme will undoubtedly have an influence on the final scanning requirements.”DP World touched off a political firestorm in the US last year when its acquisition of British rival P&O gave it control of facilities at six US ports.With Congress threatening to block the deal over national security concerns, DP World agreed to relinquish control of its US assets. In March, it announced it had sold them to a unit of American International Group. In June, US investors bought about half the $1.75 billion worth of 30-year bonds issued by DP World. Source