Identifier
Created
Classification
Origin
06DUBAI6054
2006-09-26 12:47:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Dubai
Cable title:  

EMIRATES AND DPWORLD LEADERS OUTLINE AMBITIOUS PLANS TO

Tags:  ECON EAIR EINV PREL AE 
pdf how-to read a cable
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ZNR UUUUU ZZH
R 261247Z SEP 06
FM AMCONSUL DUBAI
TO RUCPDOC/USDOC WASHINGTON DC
RUEHC/SECSTATE WASHDC 3986
INFO RUEHDE/AMCONSUL DUBAI 7002
RUEHBUL/AMEMBASSY KABUL 0185
RUEHIL/AMEMBASSY ISLAMABAD 0184
RUEHNE/AMEMBASSY NEW DELHI 0073
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHAD/AMEMBASSY ABU DHABI 1796
RUEHGB/AMEMBASSY BAGHDAD 0129
UNCLAS SECTION 01 OF 02 DUBAI 006054

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SENSITIVE
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E.O. 12958: N/A
TAGS: ECON EAIR EINV PREL AE
SUBJECT: EMIRATES AND DPWORLD LEADERS OUTLINE AMBITIOUS PLANS TO
COMMERCE A/S HERNANDEZ

(1) (SBU) SUMMARY: US Department of Commerce Assistant
Secretary Israel Hernandez discussed civil aviation plans with

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the Chairman of Dubai's Civil Aviation Authority/Emirates
Airlines, the CEO of DPWorld (government-owned port and free
zone operator) and Boeing representatives on September 17. Both
outlined ambitious civil aviation and expansion plans, including
additional Emirates flights to the US, a large joint investment
(with the Emirate of Abu Dhabi) into aerospace infrastructure
and manufacturing, and the planned new freight airport and
logistics hub in the Jebel Ali Free zone. End Summary.

(2) (U) As part of a September 17 swing through Dubai to promote
US-UAE business engagement and US exports, Assistant Secretary
for Trade Promotion and Director General of the U.S. & Foreign
Commercial Service Hernandez met with Sheikh Ahmed Bin Saeed Al
Maktoum, Chairman of Emirates Airline and President of Dubai
Civil Aviation Authority and Jamal Majid Bin Thaniah, DPWorld
Group CEO for Ports and Free Zones. He also addressed the local
U.S. business community at a luncheon organized by the American
Business Council of Dubai, and met with Boeing representatives.
A/S Hernandez was accompanied by the Ambassador, the Consul
General, SCO Reed and PCO Wall.

Sheikh Ahmed on Emirates, Civil Aviation/Aerospace plans
-------------- --------------

(3) (SBU) Sheikh Ahmed discussed Dubai civil aviation's
multi-billion dollar expansion plans, including joint investment
in aerospace manufacturing with the Emirate of Abu Dhabi's
Mubadallah organization. This initiative will entail expanded
flight training, aerospace related manufacturing (initially, we
understand, lower-tech items such as cargo containers) as well
as a new aircraft leasing scheme. He also noted that he Dubai
airport will have the capacity to handle up to 70 million
travelers annually when the second terminal (now under
construction) is up and running.

(4) (SBU) Sheikh Ahmed expressed a high level of satisfaction
with the Boeing Company, which he described as a "partner," and
with the performance of the company's 777 aircraft. A/S

Hernandez thanked Sheikh Ahmed for Emirates' purchase of Boeing
aircraft (82 aircraft ordered since 2005 totaling US$19.4
billion) and expressed his hope that the he would consider
additional purchases of Boeing's new 787 "dreamliner". Emirates
is considering purchase of as many as twenty additional aircraft
to service their new and existing routes.

(5) (SBU) Emirates will add a third daily flight to the US, and
plans to expand the number of US destinations it services. It
hopes to add, in the first instance, direct service to San
Francisco and then possibly to Chicago and Houston. It is also
seeking other western hemisphere destinations, including Buenos
Aires.

American Business Council Lunch
--------------

(6) (U) Hosted by the American Business Council in Dubai, A/S
Hernandez addressed key local US-affiliated U.S. business
leaders. The businessmen were encouraged by the Assistant
Secretary's visit, and urged him to promote additional economic

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engagement with Dubai and the Emirates, and touted Dubai as a
continuing strong US export market. A lively question and answer
trade session followed.

DPWorld: Ambitious Plans for Jebel Ali
--------------

(7) (SBU) DPWorld CEO for Ports and Free Zones Jamal Majid
bin Thaniah told A/S Hernandez he had just requested permission
from Dubai Ruler (and UAE Vice President and Prime Minister)
Sheikh Mohammed bin Rashid Al Maktoum to expand Jebel Ali Port
from a capacity of 17M TEUs (containers) per year to 55M TEUs,
which would, according to bin Thaniah, make it significantly
larger in capacity than the port of Hong Kong. Bin Thaniah said
that DPWorld was pushing ahead with its plans for a new, larger
freight airport at Jebel Ali associated with the port; the first
runway (of a planned 5) will be completed in 2007. DPworld
also plans an associated logistics hub, housing area, golf
resort and other developments. If current plans are realized,
Jebel Ali would be the largest dedicated cargo airport in the
world.

Boeing: Building on Success
--------------

DUBAI 00006054 002 OF 002



(8) (SBU) Amb. John B. Craig, Boeing Vice President, Middle
East Region, thanked A/S Hernandez, the Ambassador, Consul
General and Commercial officers Reed and Wall for the past
support and advocacy with Emirates, leading to the recent
purchase of ten Boeing 747-8 Freighters for US$ 3.3 billion by
Emirates. Hernandez pledged that the USG would continue its
strong advocacy efforts for Boeing in the UAE, both with
Emirates and Abu Dhabi-based Ettihad Airways. Craig discussed
the advantages of the 787 Dreamliners versus the competing
Airbus A350, including the Boeing's greater fuel efficiency,
satellite connectivity and new composite materials construction,
and noted he anticipated Emirates is likely to order both Boeing
and Airbus aircraft in the 787/A350 class.
SUTPHIN