Peninsular and Oriental Steam Navigation Company
Encyclopedia
The Peninsular and Oriental Steam Navigation Company, which is usually known as P&O, is a British shipping
and logistics
company which dated from the early 19th century. Following its sale in March 2006 to Dubai Ports World
for £3.9 billion, it became a subsidiary of DP World; however, the P&O brand has been retained. The company was headquartered in London
, in the United Kingdom
; it was listed on the London Stock Exchange
and was a constituent of the FTSE 100 Index
.
, a London ship broker, and Arthur Anderson
, a sailor from the Shetland Isles, northern Scotland
, went into partnership to operate a shipping line, primarily operating routes between England
and Spain
and Portugal
. In 1835, Dublin shipowner Captain Richard Bourne joined the business, and the three men started a regular steamer service between London and Spain and Portugal - the Iberian Peninsula
- using the name Peninsular Steam Navigation Company, with services to Vigo
, Oporto
, Lisbon
and Cádiz
. The company flag colours are directly connected with the Peninsular flags: the white and blue represent the Portuguese flag in 1837, and the yellow and red the Spanish flag.
In 1837, the business won a contract from the British
Admiralty
to deliver mail to the Iberian Peninsula and in 1840 they acquired a contract to deliver mail to Alexandria
in Egypt
. The present company, the Peninsular and Oriental Steam Navigation Company, was incorporated in that year by a Royal Charter
, and its name therefore includes neither "Plc" nor "Limited".
Mail
contracts were the basis of P&O's prosperity until the Second World War
, but the company also became a major commercial shipping line and passenger liner operator. In 1914, it took over the British India Steam Navigation Company, which was then the largest British shipping line, owning 131 steamers. In 1918, it gained a controlling interest in the Orient Line, its partner in the England- Australia mail route. Further acquisitions followed and the fleet reached a peak of almost 500 ships in the mid 1920s. In 1920, the company also established a bank, P&O Bank
, that it sold in 1927. At this time it established a commercial relationship with Spinney's of Haifa
, that developed into a major regional high-end grocery store chain, which eventually provided shipping services access to much of the Middle East.
Eighty-five of the company's ships were sunk in the First World War
and 179 in the Second World War.
. P&O built 15 large passenger liners, including , , , and , culminating in , its last & largest in 1961. By 1968 over 1 million immigrants had arrived - many via P&O and Australia ended the program. P&O entered the cruise
market and began to sell & scrap many of these liners. It concentrated mainly on cargo ships. It entered the tanker trade in 1959 and the roll-on roll-off
(RORO) ferry
business in the mid 1960s.
In 1969 British and Commonwealth Shipping, Furness Withy
, P&O and The Ocean Steamship Company
established Overseas Containers Limited
('OCL') to exploit containerisation. By the early 1980s it had converted all of its dry cargo liner
routes to container operations and in 1986 it bought out the remaining OCL partners, renaming the operation P&O Containers Limited (P&OCL). P&OCL was merged with Nedlloyd in 1996 to form P&O Nedlloyd
.
In 1972 P&O formally absorbed the British-India Steam Navigation Company
(BI). The amalgamation of these two companies began in 1914 but BI had retained its own identity until this time. Strick Line and Hain-Nourse, amongst several other lines were also taken over in the early 1970s. B.I. cargo ships were renamed Strath*M* (Strathmore Strathmuir, Strathmay etc.) or Strath*C* (Strathcarron, Strathcarrol), the Strick line ships renamed Strath*A* (Strathanna, Strathaird, Strathattrick (the big "A") etc.) and the Hain-Nourse ships Strath*T* (Strathtruim, Strathtay etc.). The newest ships were 6 Strath*D*s (Strathdoon, Strathduns etc.) A&P Group#Ship productionSD14s built in Sunderland. P&O also built 6 ships in Stocznia Gdansk, Poland (the Strath*E*s) and 2 ships in Japan (the Strath*F*s). P&O also bought into DOT, a naval shipping company
In 1975 P&O established Pandoro for operation of the company's Irish Sea
RORO routes. Pandoro was an acronym for P and O Roro. In 1998 P&O European Ferries (Irish Sea) Ltd
was formed by the internal merger of Pandoro Ltd. and P&O European (Felixstowe) Ltd., to run the Irish Sea routes.
In 1987 P&O took over the European Ferries Group Plc
to which it had previously sold its cross channel ferry services in 1985 which traded as Townsend Thoresen
and renamed the company P&O European Ferries.
Over the last quarter of the Twentieth Century P&O diversified into construction management (through the Bovis
companies, which it owned from 1974 to 1999), property investment and development, and a variety of service businesses including exhibition and conference centres, but most of these activities were disposed of following the company's decision in March 1999 to concentrate on maritime and transport. Its P&O Ports and P&O Cold Logistics divisions developed from P&O's operations in Australia, where it has a leading position in these fields.
Fastcraft is the name given to the service implemented after the split-up of P&O European Ferries in 1998. The first ship was called Superstar Express (entered service in 1998) and sailed alongside the Pride of Cherbourg and Pride of Hampshire to Cherbourg and back.
ferry, MS Herald of Free Enterprise, capsize
d off the coast of Zeebrugge
with 80 crew and 459 passengers aboard. 193 were killed in the capsizing. The operator of the ship, Townsend Thoresen
, had been purchased by P&O in 1986.
The incident resulted in a coroner's inquest and a public inquiry. A jury at the coroner's inquest found a prima facie
case that the company was guilty of manslaughter
, and the Crown Prosecution Service
charged the company and seven employees (see corporate manslaughter). The charges did not result in any convictions. As part of the public inquiry, Lord Justice Sheen wrote in a July 1987 report that Townsend Thoresen (the company) possessed a "disease of sloppiness" which permeated the company's hierarchy.
The cases surrounding the incident set a precedent
for the prosecution of corporations in cases of manslaughter and criminal negligence
in English law
.
. In June 2004, P&O sold its 25% stake in Royal P&O Nedlloyd
, a major container shipping business into which its container operations had been merged in 1996. The container company was later (June 2005) purchased by A.P. Moller-Maersk Group
.
reported that P&O was in takeover talks with Thunder FZE, a wholly owned subsidiary of Dubai Ports World
, a company owned by the government of Dubai
in the United Arab Emirates
. On November 29, the P&O board announced that it would be recommending an offer of 443 pence per share, worth £3.3 billion (US$
5.7 billion) to its shareholders. Ironically in early December P&O regained its status as a FTSE 100 company when BPB plc
was taken over. A bidding war commenced when Singapore's PSA International
made a £3.5 billion offer, which Dubai Ports World then topped with a bid of £3.9bn (US$7bn). Despite speculation that it would make a higher bid, PSA withdrew, and in February 2006 shareholders voted in favour of the offer from Dubai. The combined group is the world's third largest ports operator. DP World proudly preserves P&O's history through the P&O Heritage Collection.
The move placed the leasehold interests of P&O in New York City
, Newark
, Baltimore, Miami
, New Orleans
, and Philadelphia
under the control of Dubai Ports World. US operations represent ten percent of P&O's world-wide operations, and consist primarily of cranes and terminals.
Many US politicians and media commentators assumed implicitly that the merger would affect port security
at ports P&O managed or did stevedoring.
David Osler, Industrial Shipping Editor of Lloyd's List
said that US security procedures and overall port control would not be affected by the transaction.
Several US states sought ways to block the move, citing security concerns as well as the possibility of losing related leases of foreign ports.
President Bush stated he would veto any legislation created with the intent to interfere with the change.
, had acquired P&O Ports North America for an undisclosed sum. Investing in infrastructure had become the latest "hot" item for financial firms, and P&O represented a high-profile asset. AIG GIG was an experienced infrastructure investor globally, having also recently acquired the London City Airport
.
On 16 December 2006, P&O Dover (Holdings) Limited, a subsidiary of P&O and DP World sold its shares on Shekou Container Terminals Phase 1 (22.5%) and Phase 2 (owned indirectly 22.5% shares), a port of Shenzhen
, People's Republic of China
, to a joint venture company of China Merchants Holdings (International) and Modern Terminals Limited
(MTL), which MTL bore the whole cost . Shenzhen
was ranked 4th in list of world's busiest container ports and Shekou Container Terminals was one of the 4 major terminal of Shenzhen.
Shipping
Shipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...
and logistics
Logistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
company which dated from the early 19th century. Following its sale in March 2006 to Dubai Ports World
Dubai Ports World
DP World is a major operator of marine ports with 49 terminals in operation and a further 9 under development across 31 countries. In 2010, DP World handled nearly 50 million TEU across its portfolio from the Americas to Asia...
for £3.9 billion, it became a subsidiary of DP World; however, the P&O brand has been retained. The company was headquartered in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
; it was listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and was a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
.
History
In 1822, Brodie McGhie WillcoxBrodie McGhie Willcox
Brodie McGhie Willcox was a Liberal Member of Parliament and the co-founder of the Peninsular & Oriental Steam Navigation Company, one of the United Kingdom's largest shipping businesses.-Career:...
, a London ship broker, and Arthur Anderson
Arthur Anderson (businessman)
Arthur Anderson was a Scottish businessman and Liberal politician. He was co-founder of the Peninsular and Oriental Steam Navigation Company .-Career:...
, a sailor from the Shetland Isles, northern Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
, went into partnership to operate a shipping line, primarily operating routes between England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
and Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
and Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
. In 1835, Dublin shipowner Captain Richard Bourne joined the business, and the three men started a regular steamer service between London and Spain and Portugal - the Iberian Peninsula
Iberian Peninsula
The Iberian Peninsula , sometimes called Iberia, is located in the extreme southwest of Europe and includes the modern-day sovereign states of Spain, Portugal and Andorra, as well as the British Overseas Territory of Gibraltar...
- using the name Peninsular Steam Navigation Company, with services to Vigo
Vigo
Vigo is a city and municipality in north-west Spain, in Galicia, situated on the ria of the same name on the Atlantic Ocean.-Population:...
, Oporto
Porto
Porto , also known as Oporto in English, is the second largest city in Portugal and one of the major urban areas in the Iberian Peninsula. Its administrative limits include a population of 237,559 inhabitants distributed within 15 civil parishes...
, Lisbon
Lisbon
Lisbon is the capital city and largest city of Portugal with a population of 545,245 within its administrative limits on a land area of . The urban area of Lisbon extends beyond the administrative city limits with a population of 3 million on an area of , making it the 9th most populous urban...
and Cádiz
Cádiz
Cadiz is a city and port in southwestern Spain. It is the capital of the homonymous province, one of eight which make up the autonomous community of Andalusia....
. The company flag colours are directly connected with the Peninsular flags: the white and blue represent the Portuguese flag in 1837, and the yellow and red the Spanish flag.
United Kingdom of Great Britain and Ireland
The United Kingdom of Great Britain and Ireland was the formal name of the United Kingdom during the period when what is now the Republic of Ireland formed a part of it....
Admiralty
Admiralty
The Admiralty was formerly the authority in the Kingdom of England, and later in the United Kingdom, responsible for the command of the Royal Navy...
to deliver mail to the Iberian Peninsula and in 1840 they acquired a contract to deliver mail to Alexandria
Alexandria
Alexandria is the second-largest city of Egypt, with a population of 4.1 million, extending about along the coast of the Mediterranean Sea in the north central part of the country; it is also the largest city lying directly on the Mediterranean coast. It is Egypt's largest seaport, serving...
in Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
. The present company, the Peninsular and Oriental Steam Navigation Company, was incorporated in that year by a Royal Charter
Royal Charter
A royal charter is a formal document issued by a monarch as letters patent, granting a right or power to an individual or a body corporate. They were, and are still, used to establish significant organizations such as cities or universities. Charters should be distinguished from warrants and...
, and its name therefore includes neither "Plc" nor "Limited".
Mail
Mail, or post, is a system for transporting letters and other tangible objects: written documents, typically enclosed in envelopes, and also small packages are delivered to destinations around the world. Anything sent through the postal system is called mail or post.In principle, a postal service...
contracts were the basis of P&O's prosperity until the Second World War
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, but the company also became a major commercial shipping line and passenger liner operator. In 1914, it took over the British India Steam Navigation Company, which was then the largest British shipping line, owning 131 steamers. In 1918, it gained a controlling interest in the Orient Line, its partner in the England- Australia mail route. Further acquisitions followed and the fleet reached a peak of almost 500 ships in the mid 1920s. In 1920, the company also established a bank, P&O Bank
P&O Bank
In 1920 James Mackay, later the Earl of Inchcape, of the Peninsular and Oriental Steam Navigation Company, established the P&O Banking Corporation to develop the shipping company's private banking business. In the same year, Lloyds Bank and National Provincial Bank took shares in P&O Bank, which in...
, that it sold in 1927. At this time it established a commercial relationship with Spinney's of Haifa
Spinneys
Spinneys is a high-end supermarket chain in the Middle East which begun as railway provision merchants, and expanded to a grocery firm importing British Empire goods to the Mandate Palestine...
, that developed into a major regional high-end grocery store chain, which eventually provided shipping services access to much of the Middle East.
Eighty-five of the company's ships were sunk in the First World War
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
and 179 in the Second World War.
Post war
After 1945, the passenger market declined to India but boomed to Australia with the advent of paid-passages for literate & healthy European immigrants known as Ten Pound PomsTen Pound Poms
Ten Pound Poms is a colloquial term used in Australia to describe British subjects who migrated to Australia after the Second World War under an assisted passage scheme established and operated by the Government of Australia.The scheme, a follow-on to the unofficial Big Brother Movement,...
. P&O built 15 large passenger liners, including , , , and , culminating in , its last & largest in 1961. By 1968 over 1 million immigrants had arrived - many via P&O and Australia ended the program. P&O entered the cruise
Cruising (maritime)
Cruising by boat is a lifestyle that involves living for extended time on a boat while traveling from place to place for pleasure. Cruising generally refers to trips of a few days or more, and can extend to round-the-world voyages.- History :...
market and began to sell & scrap many of these liners. It concentrated mainly on cargo ships. It entered the tanker trade in 1959 and the roll-on roll-off
RORO
Roll-on/roll-off ships are vessels designed to carry wheeled cargo such as automobiles, trucks, semi-trailer trucks, trailers or railroad cars that are driven on and off the ship on their own wheels...
(RORO) ferry
Ferry
A ferry is a form of transportation, usually a boat, but sometimes a ship, used to carry primarily passengers, and sometimes vehicles and cargo as well, across a body of water. Most ferries operate on regular, frequent, return services...
business in the mid 1960s.
In 1969 British and Commonwealth Shipping, Furness Withy
Furness Withy
Furness Withy was a major British transport business. It was listed on the London Stock Exchange.-History:The Company was founded by Christopher Furness and Henry Withy in 1891 in Hartlepool. This was achieved by the amalgamation of the Furness Line of steamers with the business of Edward Withy and...
, P&O and The Ocean Steamship Company
Ocean Group plc
Ocean Group plc was a major British transport business. It was listed on the London Stock Exchange and was a constituent of the FTSE 250 Index.-History:...
established Overseas Containers Limited
Overseas Containers Limited
Overseas Containers Limited was a container shipping company formed by a consortium of British shipping companies in 1965. It is not to be confused with Orient Overseas Container Line .-History:...
('OCL') to exploit containerisation. By the early 1980s it had converted all of its dry cargo liner
Cargo liner
A Cargo liner is a type of merchant ship which carried general cargo and often passengers. They became common just after the middle of the nineteenth century, and eventually gave way to container ships and other more specialized carriers in the latter half of the twentieth...
routes to container operations and in 1986 it bought out the remaining OCL partners, renaming the operation P&O Containers Limited (P&OCL). P&OCL was merged with Nedlloyd in 1996 to form P&O Nedlloyd
P&O Nedlloyd
P&O Nedlloyd Container Line Limited was an Anglo-Dutch worldwide ocean-going container shipping line, with dual headquarters in London and Rotterdam. The company was formed in 1997 by the merger of the container-shipping interests of the leading Dutch transportation company Royal Nedlloyd and the...
.
In 1972 P&O formally absorbed the British-India Steam Navigation Company
British-India Steam Navigation Company
British India Steam Navigation Company was formed in 1856 as the Calcutta and Burmah Steam Navigation Company. The company had been formed out of Mackinnon, Mackenzie & Co, a trading partnership of the Scots William Mackinnon and Robert Mackenzie, to carry mail between Calcutta and Rangoon. It...
(BI). The amalgamation of these two companies began in 1914 but BI had retained its own identity until this time. Strick Line and Hain-Nourse, amongst several other lines were also taken over in the early 1970s. B.I. cargo ships were renamed Strath*M* (Strathmore Strathmuir, Strathmay etc.) or Strath*C* (Strathcarron, Strathcarrol), the Strick line ships renamed Strath*A* (Strathanna, Strathaird, Strathattrick (the big "A") etc.) and the Hain-Nourse ships Strath*T* (Strathtruim, Strathtay etc.). The newest ships were 6 Strath*D*s (Strathdoon, Strathduns etc.) A&P Group#Ship productionSD14s built in Sunderland. P&O also built 6 ships in Stocznia Gdansk, Poland (the Strath*E*s) and 2 ships in Japan (the Strath*F*s). P&O also bought into DOT, a naval shipping company
In 1975 P&O established Pandoro for operation of the company's Irish Sea
Irish Sea
The Irish Sea separates the islands of Ireland and Great Britain. It is connected to the Celtic Sea in the south by St George's Channel, and to the Atlantic Ocean in the north by the North Channel. Anglesey is the largest island within the Irish Sea, followed by the Isle of Man...
RORO routes. Pandoro was an acronym for P and O Roro. In 1998 P&O European Ferries (Irish Sea) Ltd
P&O Irish Sea
P&O Irish Sea was the trading name of P&O Ferries in the Irish Sea from 1998 - 2010. It has now merged back to being P&O Ferries.-History:P&O Irish Sea was formed in 1998, following the merger of the Cairnryan-based service of P&O European Ferries Ltd and Pandoro...
was formed by the internal merger of Pandoro Ltd. and P&O European (Felixstowe) Ltd., to run the Irish Sea routes.
In 1987 P&O took over the European Ferries Group Plc
European Ferries
European Ferries Group Plc was a company that operated in passenger and freight ferries, harbour operation and property management in the United Kingdom and the United States...
to which it had previously sold its cross channel ferry services in 1985 which traded as Townsend Thoresen
European Ferries
European Ferries Group Plc was a company that operated in passenger and freight ferries, harbour operation and property management in the United Kingdom and the United States...
and renamed the company P&O European Ferries.
P&O Ferries
P&O Ferries is the current name for the amalgamation of a range of ferry services that operated from the United Kingdom to Ireland and Continental Europe...
Over the last quarter of the Twentieth Century P&O diversified into construction management (through the Bovis
Bovis Homes Group
Bovis Homes Group plc is a second tier national British housebuilding company based in New Ash Green, Kent. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.-History:...
companies, which it owned from 1974 to 1999), property investment and development, and a variety of service businesses including exhibition and conference centres, but most of these activities were disposed of following the company's decision in March 1999 to concentrate on maritime and transport. Its P&O Ports and P&O Cold Logistics divisions developed from P&O's operations in Australia, where it has a leading position in these fields.
Fastcraft is the name given to the service implemented after the split-up of P&O European Ferries in 1998. The first ship was called Superstar Express (entered service in 1998) and sailed alongside the Pride of Cherbourg and Pride of Hampshire to Cherbourg and back.
MS Herald of Free Enterprise incident
On 6 March 1987, the roll on/roll offRORO
Roll-on/roll-off ships are vessels designed to carry wheeled cargo such as automobiles, trucks, semi-trailer trucks, trailers or railroad cars that are driven on and off the ship on their own wheels...
ferry, MS Herald of Free Enterprise, capsize
Capsize
Capsizing is an act of tipping over a boat or ship to disable it. The act of reversing a capsized vessel is called righting.If a capsized vessel has sufficient flotation to prevent sinking, it may recover on its own if the stability is such that it is not stable inverted...
d off the coast of Zeebrugge
Zeebrugge
Zeebrugge is a village on the coast of Belgium and a subdivision of Bruges, for which it is the modern port. Zeebrugge serves as both the international port of Bruges-Zeebrugge and a seafront resort with hotels, cafés, a marina and a beach.-Location:...
with 80 crew and 459 passengers aboard. 193 were killed in the capsizing. The operator of the ship, Townsend Thoresen
European Ferries
European Ferries Group Plc was a company that operated in passenger and freight ferries, harbour operation and property management in the United Kingdom and the United States...
, had been purchased by P&O in 1986.
The incident resulted in a coroner's inquest and a public inquiry. A jury at the coroner's inquest found a prima facie
Prima facie
Prima facie is a Latin expression meaning on its first encounter, first blush, or at first sight. The literal translation would be "at first face", from the feminine form of primus and facies , both in the ablative case. It is used in modern legal English to signify that on first examination, a...
case that the company was guilty of manslaughter
Manslaughter in English law
In the English law of homicide, manslaughter is a less serious offence than murder, the differential being between levels of fault based on the mens rea . In England and Wales, the usual practice is to prefer a charge of murder, with the judge or defence able to introduce manslaughter as an option...
, and the Crown Prosecution Service
Crown Prosecution Service
The Crown Prosecution Service, or CPS, is a non-ministerial department of the Government of the United Kingdom responsible for public prosecutions of people charged with criminal offences in England and Wales. Its role is similar to that of the longer-established Crown Office in Scotland, and the...
charged the company and seven employees (see corporate manslaughter). The charges did not result in any convictions. As part of the public inquiry, Lord Justice Sheen wrote in a July 1987 report that Townsend Thoresen (the company) possessed a "disease of sloppiness" which permeated the company's hierarchy.
The cases surrounding the incident set a precedent
Precedent
In common law legal systems, a precedent or authority is a principle or rule established in a legal case that a court or other judicial body may apply when deciding subsequent cases with similar issues or facts...
for the prosecution of corporations in cases of manslaughter and criminal negligence
Criminal negligence
In the criminal law, criminal negligence is one of the three general classes of mens rea element required to constitute a conventional as opposed to strict liability offense. It is defined as an act that is:-Concept:...
in English law
English law
English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countries and the United States except Louisiana...
.
Demergers
On October 23, 2000 P&O demerged its cruise business to form P&O Princess Cruises. In April 2003 P&O Princess came together with the Carnival Corporation to form Carnival Corporation & plcCarnival Corporation & plc
Carnival Corporation & plc , is a American-British Company, and the world's largest cruise ship operator. It is a dual listed company, with headquarters at Carnival Place in the Miami suburb of Doral, Florida, USA, and at Carnival House in Southampton, England, UK...
. In June 2004, P&O sold its 25% stake in Royal P&O Nedlloyd
P&O Nedlloyd
P&O Nedlloyd Container Line Limited was an Anglo-Dutch worldwide ocean-going container shipping line, with dual headquarters in London and Rotterdam. The company was formed in 1997 by the merger of the container-shipping interests of the leading Dutch transportation company Royal Nedlloyd and the...
, a major container shipping business into which its container operations had been merged in 1996. The container company was later (June 2005) purchased by A.P. Moller-Maersk Group
A.P. Moller-Maersk Group
A.P. Moller – Maersk Group , also known as Maersk , is a Danish business conglomerate. A.P. Moller – Maersk Group has activities in a variety of business sectors, primarily within the transportation and energy sectors. It is the largest container ship operator and supply vessel operator in the...
.
Takeover by DP World
On Sunday October 30, 2005 The Sunday TimesThe Sunday Times (UK)
The Sunday Times is a Sunday broadsheet newspaper, distributed in the United Kingdom. The Sunday Times is published by Times Newspapers Ltd, a subsidiary of News International, which is in turn owned by News Corporation. Times Newspapers also owns The Times, but the two papers were founded...
reported that P&O was in takeover talks with Thunder FZE, a wholly owned subsidiary of Dubai Ports World
Dubai Ports World
DP World is a major operator of marine ports with 49 terminals in operation and a further 9 under development across 31 countries. In 2010, DP World handled nearly 50 million TEU across its portfolio from the Americas to Asia...
, a company owned by the government of Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
in the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
. On November 29, the P&O board announced that it would be recommending an offer of 443 pence per share, worth £3.3 billion (US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
5.7 billion) to its shareholders. Ironically in early December P&O regained its status as a FTSE 100 company when BPB plc
BPB plc
BPB plc is a British building materials business: it is the world's largest manufacturer of plasterboard. It once was a constituent of the FTSE 100 Index...
was taken over. A bidding war commenced when Singapore's PSA International
PSA International
PSA International Pte Ltd, formerly Port of Singapore Authority is the second largest port operator in the world. The company's flagship operations are PSA Singapore Terminals, PSA HNN and PSA Marine...
made a £3.5 billion offer, which Dubai Ports World then topped with a bid of £3.9bn (US$7bn). Despite speculation that it would make a higher bid, PSA withdrew, and in February 2006 shareholders voted in favour of the offer from Dubai. The combined group is the world's third largest ports operator. DP World proudly preserves P&O's history through the P&O Heritage Collection.
Takeover controversy
When the merger was approved by the US government in February 2006, the Bush Administration came under fire from critics who questioned the decision to allow an Arab-owned company to oversee US ports.The move placed the leasehold interests of P&O in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, Newark
Newark, New Jersey
Newark is the largest city in the American state of New Jersey, and the seat of Essex County. As of the 2010 United States Census, Newark had a population of 277,140, maintaining its status as the largest municipality in New Jersey. It is the 68th largest city in the U.S...
, Baltimore, Miami
Miami, Florida
Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625...
, New Orleans
New Orleans, Louisiana
New Orleans is a major United States port and the largest city and metropolitan area in the state of Louisiana. The New Orleans metropolitan area has a population of 1,235,650 as of 2009, the 46th largest in the USA. The New Orleans – Metairie – Bogalusa combined statistical area has a population...
, and Philadelphia
Philadelphia, Pennsylvania
Philadelphia is the largest city in the Commonwealth of Pennsylvania and the county seat of Philadelphia County, with which it is coterminous. The city is located in the Northeastern United States along the Delaware and Schuylkill rivers. It is the fifth-most-populous city in the United States,...
under the control of Dubai Ports World. US operations represent ten percent of P&O's world-wide operations, and consist primarily of cranes and terminals.
Many US politicians and media commentators assumed implicitly that the merger would affect port security
Port security
Port security refers to the defense, law and treaty enforcement, and counterterrorism activities that fall within the port and maritime domain...
at ports P&O managed or did stevedoring.
David Osler, Industrial Shipping Editor of Lloyd's List
Lloyd's List
Lloyd's List is one of the world's oldest continuously-running journals, having provided weekly shipping news in London as early as 1734. Now published daily, a recent issue was numbered 59,200...
said that US security procedures and overall port control would not be affected by the transaction.
Several US states sought ways to block the move, citing security concerns as well as the possibility of losing related leases of foreign ports.
President Bush stated he would veto any legislation created with the intent to interfere with the change.
Sale of assets
On March 9, 2006, DP World agreed to sell its terminal operations at the American ports to an American company. On December 11, 2006, it was announced that AIG Global Investment Group, a division of insurance giant AIGAmerican International Group
American International Group, Inc. or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in...
, had acquired P&O Ports North America for an undisclosed sum. Investing in infrastructure had become the latest "hot" item for financial firms, and P&O represented a high-profile asset. AIG GIG was an experienced infrastructure investor globally, having also recently acquired the London City Airport
London City Airport
London City Airport is a single-runway airport. It principally serves the financial district of London and is located on a former Docklands site, east of the City of London, opposite the London Regatta Centre, in the London Borough of Newham in east London. It was developed by the engineering...
.
On 16 December 2006, P&O Dover (Holdings) Limited, a subsidiary of P&O and DP World sold its shares on Shekou Container Terminals Phase 1 (22.5%) and Phase 2 (owned indirectly 22.5% shares), a port of Shenzhen
Shenzhen
Shenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
, People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, to a joint venture company of China Merchants Holdings (International) and Modern Terminals Limited
Modern Terminals Limited
Modern Terminals Limited , is the second largest container terminal operator in Hong Kong, just after Hongkong International Terminals Limited...
(MTL), which MTL bore the whole cost . Shenzhen
Shenzhen
Shenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
was ranked 4th in list of world's busiest container ports and Shekou Container Terminals was one of the 4 major terminal of Shenzhen.
Operations
P&O operated the following ferry companies:- P&O FerriesP&O FerriesP&O Ferries is the current name for the amalgamation of a range of ferry services that operated from the United Kingdom to Ireland and Continental Europe...
- P&O Portsmouth
- P&O Irish SeaP&O Irish SeaP&O Irish Sea was the trading name of P&O Ferries in the Irish Sea from 1998 - 2010. It has now merged back to being P&O Ferries.-History:P&O Irish Sea was formed in 1998, following the merger of the Cairnryan-based service of P&O European Ferries Ltd and Pandoro...
- P&O Stena LineP&O Stena LineP&O Stena Line was formed in 1998 after the merger of P&O European Ferries Ltd and the Dover and Newhaven operations of Stena Line.-History:...
See also
Other Port operators in the UK include:- Associated British Ports
- Mersey Docks and Harbour CompanyMersey Docks and Harbour CompanyThe Mersey Docks and Harbour Company , formerly the Mersey Docks and Harbour Board , owns and administers the dock facilities of the Port of Liverpool, on the River Mersey, England...
- PD Ports