FOR IMMEDIATE RELEASE

Port Authority Relents On Sale

Of Dubai Firm's Terminal

Article Taken From The Star-Ledger - February 17, 2007

Researched By: Eric Townes

Under intense political pressure, the Port Authority of NY and NJ said it would step aside and allow a Dubai company to sell its shipping terminal business in Newark.  In exchange, the new buyer has agreed to invest $50 million for improvements at the terminal over the next 23 years.  The Port Authority had been withholding it consent of the sale of Port Newark Container Terminal, a move that angered political leaders who wanted the United Arab Emirates company to divest its U.S. port holdings as soon as possible.

The agreement resolves the flare-up of the controversy that erupted last year when the Dubai firm, DP World, acquired port operations in Newark, Philadelphia, Baltimore, Miami and New Orleans.  Under the agreement, the Port Authority will receive $10 million toward a $23 million project to build an overpass linking the Newark terminal to a freight line, and another $40 million for future improvements to the site. The PA had been asking for $84 million.

The money will be paid by Ports America Inc., an affiliate of AIG Global Investment Group, which is buying the Newark operation and five other major U.S. terminals from DP World, officials said. Industry experts say the deal is worth more than $1 billion. "The parties believe that Ports America's commitment will help ensure the continued growth of jobs and economic activity at the port," Port Authority officials said in a statement.

Chris Winans, a spokesman for Ports America, said the company was thrilled everything worked out. "We look forward to a long and successful relationship with the PA and to ensuring that PNCT is a best-in-class terminal operation for the New York and New Jersey economy, " Winans said.

Officials say the sale of the terminals likely will become final in April. The Port Authority owns the terminal and leases out its operation. In 2005, Port Newark Container Terminal (PNCT) handled 1 million 20-foot cargo containers, making it the second largest operation at the Port of New York and New Jersey, the largest port on the East Coast. Industry expert said that the Newark terminal was the key asset in the sale.

The Port Authority had expressed concerns about having an investment firm with no port experience taking over the terminal operations. Those concerns, however, were quickly resolved.

"In addition, the PA concluded that materials and information it received regarding Ports America and its ownership have confirmed that it will be a suitable terminal operator and partner committed to making investments that are critical to the continued strength and viability of the Port of New York and New Jersey, the leading East Coast destination for international shippers," said the Port Authority's statement.