VZCZCXRO9045
PP RUEHDE
DE RUEHDE #1067/01 0571345
ZNR UUUUU ZZH
P 261345Z FEB 06
FM AMCONSUL DUBAI
TO RUEHC/SECSTATE WASHDC PRIORITY 8686
INFO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 1311
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHDE/AMCONSUL DUBAI 1607

UNCLAS SECTION 01 OF 02 DUBAI 001067 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR NEA/ARPI, EB/IFD/OIA, EB/TPP/BTA 
STATE PASS USTR FOR DOUG BELL 
COMMERCE FOR BIS MARY O'BRIEN 
 
E.O. 12958: N/A 
TAGS: EINV ETRD PREL TC
SUBJECT: STRUCTURE AND LEADERSHIP OF DUBAI PORTS OPERATIONS 
 
1.(U) Summary: Operations and regulatory functions at Dubai's 
ports are held under the umbrella of the Ports, Customs and Free 
Zone Corporation (PCFC).  Dubai Ports World (DPW) controls the 
commercial and cargo handling operations at several UAE ports 
(not including the Dubai Creek dhow wharfage), and at a growing 
number of ports across the globe.  Dubai Customs and a 
newly-established Ports Authority hold overall regulatory and 
enforcement powers at Dubai ports. End Summary. 
 
PCFC Overview 
------------- 
 
2.(U) The Ports, Customs and Free Zone Corporation (PCFC), a 
Dubai government-owned corporation established by a Dubai 
Ruler's decree in 2001, was created as a legal entity to hold 
various authorities and subsidiaries that operate or regulate 
the ports business in Dubai.  These now include Dubai Ports 
World (DPW), Dubai Customs, and the soon-to-be announced Dubai 
Ports Authority.  (A fourth entity, the Jebel Ali Free Zone 
Authority (JAFZA), plays no role in cargo handling or regulation 
enforcement at the ports, serving only as a duty free zone for 
business activity.)  Sheikh Mohammad bin Rashid Al Maktoum, 
Ruler of Dubai, and UAE Vice President and Prime Minister, is 
the chairman of PCFC, while Sultan bin Salayem is the executive 
chairman and handles the day-to-day management of PCFC's 
operations. Hamed Kazim is PCFC's Chief Financial Officer, and 
Jamal Majid bin Thaniah is PCFC Vice Chairman with 
responsibility for Dubai Ports World (DPW) and Jebel Ali Free 
Zone. 
 
DPW History, Structure 
---------------------- 
 
3.(U) DPW, under CEO Mohammed Sharaf and COO Edward Bilkey, is 
the result of a September 2005 merger between Dubai Ports 
Authority (DPA) and Dubai Ports International (DPI).  Prior to 
the merger, DPA had been responsible for domestic (UAE) port 
operations while DPI handled overseas ports. In early 2005, DPI 
acquired CSX World Terminals for USD 1.5 billion, giving it new 
locations in China, Australia, Germany, the Dominican Republic 
and Venezuela.  The former CSX ports, in addition to facilities 
previously purchased or being developed by DPI in India, 
Djibouti and South Korea, make up the bulk of DPW operations. 
(Late last year DPW created a new subsidiary commercial entity, 
Thunder FZE, expressly for the purpose of negotiating the 
financing and purchase of UK-owned P&O.) 
 
4.(U) DPW's domestic operations are at Jebel Ali and Port Rashid 
in Dubai, and at the ports of Abu Dhabi and Fujeirah. DPW is not 
responsible for port management operations at the dhow wharfage 
on Dubai Creek.  PCFC's main presence at Dubai Creek is the 
large Dubai Customs operation there.  Even prior to the merger 
with DPI, DPA had not been involved in managing the loading and 
unloading of cargo at Dubai Creek.  While DPW itself plays no 
role in Creek operations, a small legacy DPA unit there is 
responsible for ensuring adherence to port regulations.  DPA had 
originally included two elements:  (1) a large port management 
element related to handling of cargo and containers, and (2) a 
regulatory element responsible for ensuring adherence to 
government regulations and port ordinances.  After DPA's merger 
with DPI, it became clear that the new entity, DPW, should not 
be in the business of enforcing regulations and imposing fines 
on violators.  DPW thus recently signed an agreement with the 
Dubai Government according to which a new PCFC entity, to be 
known as the Dubai Ports Authority, will be responsible for 
regulatory enforcement at all of Dubai's ports.  This new 
arrangement will become final with an announcement scheduled for 
early March. 
 
Dubai Customs 
------------- 
 
5.(U) Dubai Customs, under Director General Ahmed Butti, 
regulates imports and exports to and from Dubai, enforces UAE 
Federal Customs policies, collects customs duties and keeps 
trade statistics.  Dubai Customs is a member of the World 
Customs Organization and is currently undergoing the WCO's 
Customs Reform and Modernization program to make certain it is 
fully in compliance with the most stringent international norms. 
 Dubai Customs hosts the region's only operational Container 
Security Initiative (CSI) program.  Under CSI, a team of DHS 
agents is permanently assigned to Dubai's ports, where it works 
closely with Dubai Customs to identify containers requiring 
 
DUBAI 00001067  002 OF 002 
 
 
additional scrutiny.  The Department of Energy's Megaports 
Initiative is on schedule to begin operations later this year; 
it includes installation of radiation detection equipment in 
Dubai's ports.  The UAE Federal Customs Authority sets policies 
that should be applied and enforced by local customs agencies; 
it audits, regulates and oversees local customs agencies. 
DAVIS