Would Arab-Owned Company Really Pose Port Risk?

PORT OF BALTIMORE, Md., Feb. 22, 2006 — -- Politicians have raised the alarm at every level of government about an Arab-owned company, Dubai Ports World, which is poised to take over operations at major American seaports. But what would a takeover by the Dubai company really mean for day-to-day operations at the six U.S. ports?

Port security actually begins three to 12 miles out at sea, where the U.S. Coast Guard makes first contact with all cargo ships heading to U.S. ports.

"They can board any ship that enters into the U.S. territorial waters," said Michael Lovejoy, director of the U.S. Customs Service's anti-smuggling programs for field operations.

Once a ship reaches port, the U.S. Customs Service takes over. Agents using computers scan the ship's manifest trying to determine if any of the ship's containers might be high risk.

"While the ship is still overseas, 24 hours prior to loading the cargo onboard, they send us the electronic manifest information, which is the contents of the container, who it's being shipped from, and who's it being shipped to," said Lovejoy.

Only 5 percent to 7 percent of all cargo is physically screened. Some of it is X-rayed for indications of conventional weapons, drugs or other contraband. Others may be subjected to portable radiation detectors, which search for evidence of a nuclear device.

It is only after customs has cleared the cargo that the port operator, a company like Dubai Ports World, begins to unload the thousands of containers.

The primary responsibility of the company that operates the port is to unload the thousands of containers coming in from overseas. Employees hired by the companies are union-affiliated and will likely not change should the deal with the Dubai company go forward.

The company does background checks on all employees, and some security analysts say the new company poses no security risk.

ABC News' Pierre Thomas filed this report for "World News Tonight."