Another DP World casualty: Sanborn withdraws nomination to U.S. Maritime Administration

Published 28 March 2006

Not with a bang but a whimper: DP World’s high official, nominated by Bush in mid-January to oversee U.S. maritime agency, withdraws his nomination in the face of congressional opposition

Timing is everything: In yesterday’s issue we said this was the painful recognition which Ramat Gan, Israel-based software developer Check Point came to as it called off its plan to acquire Columbia, Maryland-based security software specialist Sourcefire. Today we note that this recognition came to a high official with a Dubai-owned company who withdrew his nomination as head of the agency that oversees ports. In January Bush nominated David Sanborn, DP World’s director of operations for Europe and Latin America, to head the U.S. Maritime Administration. Shortly after the nomination, DP World’s planned purchase of a company that runs six major U.S. port facilities became the center of a roiling political controversy.

Sanborn, a graduate of the U.S. Merchant Marine Academy and a retired U.S. Navy officer, said in his letter that the day he was nominated was the proudest of his life. “While I believe my background makes me one of the most qualified people there is for this position, the convergence of a number of factors bring me to the conclusion that I cannot effectively serve my country, you, and the U.S. maritime industry,” Sanborn wrote.

Two Democratic senators objected to Sanborn’s nomination. Former presidential candidate John Kerry (D-Massachusetts) and Senator Bill Nelson (D-Florida), put holds on Sanborn’s nomination, saying they needed to know more about Sanborn’s role in the process that allowed DP World to purchase the port operations in the first place. “I hope the withdrawal of this nomination means the administration is finally waking up to the homeland security problems with our ports, not just saving face after the merciful end of the Dubai debacle,” said Kerry.

The Maritime Administration, or MARAD, keeps data on port traffic, disposes of obsolete ships, runs the Merchant Marine Academy and works with the Defense Department on a program to identify U.S.-flagged ships that could be used to transport military cargo.