Dubai And Debt

Dubai and debt

Ok, it is a hackneyed phrase but they must be turning in their grave. Back in 1822 Brodie McGhie Willcox and Arthur Anderson got together and were joined in 1835 by Captain Richard Bourne to form in 1837 what was to become the well loved and greatly respected Peninsular & Oriental Steam Navigation Company (P&O): registered by Royal Charter. As recently as 2004 it was glorified in the FTSE 100 as a prime UK-based business turning over £2.4bn and with over 22,000 employees world-wide.

P&O not only weathered the seven seas, its assets and men weathered British interests to the tune of losing 85 ships in the Great War and 179 in World War 2. From packages to heavy freight to the largest ocean-going liners to hotels and ports, P&O bestrode the world. Then, like all great empires, it started to fade. The liners faded into Carnival and the ports and infrastructure faded into DP World except that American Senators cried foul and an American business subservient to (can you believe) AIG bought out the American ports on nationalistic grounds after ex-President Bush threatened to veto any deal to let Arabs have his port interests.

Can this woeful story have a happy end? It is just possible since DP World is part of Dubai World which is a Dubai government investment company that cannot pay its way. Its huge debt way. So huge that the financial world shudders once again and all the stock exchanges are flashing red. Come on British Business Ltd, go get our P & O back.

More at my website: http://www.jgwalkersmith.co.uk