NEWS RELEASE Office of Senator Elizabeth Dole 3.3.2006

News Release: March 2, 2006 Washington, D.C . – U.S. Senator Elizabeth Dole today made the following statement in a Senate Banking Hearing examining the acquisition of Peninsular & Oriental Steam Navigation Co. by Dubai Ports World: Mr. Chairman, I thank you for holding this very important hearing on an issue about which many Americans – including many of us in Congress – have concerns, and I would like to thank the distinguished panelists for joining us today to discuss this topic. Protecting our ports is a daunting task. As a former Secretary of Transportation, who then oversaw the Coast Guard, I know first-hand the important role that effective port security plays in protecting the United States. The U.S. maritime system consists of more than 300 sea and river ports with more than 3,700 cargo and passenger terminals. It is estimated that more than 9 million marine containers enter U.S. ports each year. While the U.S. Coast Guard and the Bureau of Customs and Border Protection have the primary responsibility to control and administer port security, they cannot bear the sole burden of this duty. With the vast number of containers that come through our ports each and every day, it is critical that all entities having contact with U.S. ports have our best interests in mind. Last week, the Senate Armed Services Committee was briefed by Administration officials about the process that governs foreign acquisitions. As a result of that briefing, I believe that we have a better understanding of the events that led to the approval of this transaction. For instance, we learned that lawyers for the company first approached the Department of Treasury about this transaction in October 2005. We also learned that key agencies responsible for protecting our homeland were consulted during the process and did not object to the approval of this transaction. Although these are encouraging signs, several concerns remain. For instance, like most Americans, I personally disagree with CFIUS's assessment that a more extensive investigation into this transaction was not warranted. So I am pleased that the Administration has now agreed to undertake a 45-day second-look investigation of the Dubai Ports World transaction. If this investigation is both thorough and transparent, the American people will have confidence in the soundness of whatever conclusions are reached about the transaction's impact on our national security. During this process, we should review Dubai Ports World's record of management in other ports and determine whether they have created an environment that helps or hinders port security, and we also need assurances about any changes that Dubai Ports World might undertake at our ports and how such changes may affect port security. In addition, I hope that Congress and the Administration can open a dialogue about how to create a more transparent CFIUS process. In recent days, it's been suggested that the process may have significant deficiencies. Unfortunately, some have sought to politicize this issue. The goal here is not to point fingers – the goal is to ensure that the correct result is reached in this case and that national security, as always, is our foremost priority. I am confident that working with the Administration, we will be able to achieve this shared goal. Thank you.

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