EMIRATES SHIPPING LINES INFORMATION

UNCLAS DUBAI 004122

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EWWT EIND ETRD AE HK
SUBJECT: EMIRATES SHIPPING LINES INFORMATION

REF: A. STATE 872252, B. HONG KONG 02428

1.(U) SUMMARY: Poleconoff met with Emirates Shipping Line (ESL)
executive in Dubai on June 27, as requested in reftel A. ESL's
attorney's will submit a formal response to the US Federal
Maritime Commission. ESL executive was willing to describe
ownership and functions of ESL companies and gave assurances
that there was no government ownership, management, or control
over any entity. ESL will open an office in Dubai in the near
future. It leases two vessels that are registered in Liberia and
fly the Liberian flag. End Summary.

2.(U) Poleconoff met with Emirates Shipping Line (ESL) Senior
Vice President, Middle East, Africa and Mediterranean, Mohamed
El Alfy regarding information requested in ref A. The questions
in reftel A had previously been transmitted by Poleconoff to El
Alfy by e-mail, while El Alfy was traveling in Kuwait and Iran.
El Alfy said that ESL's attorneys would submit a formal response
to the Federal Maritime Commission in the United States. ESL
executives discussed the same information with Consulate Hong
Kong (ref B).

Ownership
--------------

3.(SBU) El Alfy described the ownership structure of ESL.
Emirates Shipping Lines, Free Zone Company (FZCO) is wholly
owned by Emirates Shipping Holding (ESH),FZCO. ESH is owned 51
percent by retired Major General Abdulaziz al-Bannai, who is a
UAE national. 49 percent is owned by Mr. Vikas Khan,
(nationality unknown). Emirates Shipping Lines, LLC, Free Zone
Entity (FZE),which is the shipping agent for ESL in Dubai is
owned 51 percent by al-Bannai, 48 percent by Khan, and 1 percent
by El Alfy, an Egyptian national. El Alfy explained that under
UAE law, he had to be a co-owner in order to register the
shipping agent in Dubai. All three entities are registered in
Dubai Maritime City, which is under the Jebel Ali Free Zone
Authority.

4.(U) El Alfy assured Poleconoff that neither the government of
Dubai nor the UAEG had a management role, or ownership, or
exerted any control over ESL. He commented that the name
Emirates was chosen because it was readily recognized around the
world. Major General al-Bannai, a recent retiree from the Dubai
Police, claims to have no official position in the government of
Dubai or the UAE.

ESL's Address in Dubai
--------------

5.(U) ESL will open an office in Dubai in early July 2006. The
office will be in Suite 1004 Al Moosa Tower, Shaikh Zayed Road,
Dubai. ESL's postal address is P.O. Box 122115, Dubai, UAE.

Vessels Under Charter
--------------

6.(U) ESL charters two 3000 TEU container ships, the Emirates
Liberty and the Emirates Freedom, and plans to charter two more
vessels. Both vessels are registered in Monrovia, Liberia and
fly the Liberian flag.

Liner Services
--------------

7.(U) ESL plans liner service to the United States from India
and China. The Indus Express service will provide service
between the ports of Mundra, Tuticorn, and Nhava Sheva in India,
Colombo, Sri Lanka, Barcelona, Spain, and the ports of New York,
Norfolk, and Charleston, SC. The Emirates Liberty and Emirates
Freedom will sail on the Indus Express service.

8.(U) ESL's other planned liner service, the Asia Gulf Express,
will provide service between the ports of Shanghai and Ningbo in
China, Pusan in South Korea, and Colon, Panama, Kingston,
Jamaica, and the US ports of Houston, Mobile, and Tampa on the
Gulf of Mexico. ESL plans to charter two container ships for
this service.

BURNS