Dubai-owned company drops US ports plan

A Dubai-owned company abruptly abandoned its plan for managing operations at six US ports yesterday, defusing an election-year showdown between President George Bush and the Republican-controlled Congress.

“DP World will transfer fully the US operations ... to a United States entity,” Edward Bilkey, the company’s top executive, said in the surprise announcement.

It was unclear which American business might get the port operations.

Hours earlier, Republican House and Senate leaders privately told the president Congress was all but certain to block DP World’s plan, despite his threats to veto any legislation killing the deal.

The White House expressed satisfaction with the company’s decision, but acknowledged it was a way to resolve the issue.

“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,” said White House press secretary Scott McClellan said.