DUBAI MEGAPORTS INITIATIVE EQUIPMENT INSTALLATION STILL

C O N F I D E N T I A L DUBAI 000462


DEPARTMENT FOR NEA/FO; NEA/ARP FOR BMASILKO; ISN FOR PMCNERNEY;
DOE/NNSA FOR WTOBEY

E.O. 12958: DECL: 12/11/2018
TAGS: PGOV PREL ETRD ETTC KNNP AE
SUBJECT: DUBAI MEGAPORTS INITIATIVE EQUIPMENT INSTALLATION STILL
STALLED

CLASSIFIED BY: Paul Sutphin, Consul General, Dubai, UAE.
REASON: 1.4 (b),(d)


1. (C) Summary: Progress in implementing the U.S. Department
of Energy Megaports Initiative at Jebel Ali is stalled because
U.S. equipment (SAIC-made scanners) that Dubai Customs planned
to buy does not meet U.S. Department of Energy (DOE) / National
Nuclear Security Administration (NNSA) requirements. Dubai Ports
World (DP World),the operator of Jebel Ali, is pressuring Dubai
Customs to abandon its interest in that equipment in favor of
pre-approved options. Dubai Customs may also have concerns
about possible negative consequences for Dubai flowing from the
"Strategic Trade Corridor Strategy;" we will address this issue
with a visiting U.S. Customs and Border Protection team next
week in Dubai. End Summary.


2. (C) The Dubai Ports, Customs, and Free Zone Corporation and
the DOE/NNSA signed a Memorandum of Understanding (MOU) in May
2005 to implement at Dubai's Jebel Ali port the Megaports
Initiative, a global program that seeks to provide international
partners with the capability to identify the presence of special
nuclear material (SNM) or other radiological material in cargo
containers. The MOU was designed to encourage the scanning of
as many containers as possible regardless of ultimate
destination. Under the Megaports Initiative's maritime risk
model, which identifies ports of interest based on several
risk-based factors, Khor Fakkan in Sharjah emirate and Mina
Zayed in Abu Dhabi are also possible candidates for eventual
inclusion in the program. (Note: The UAE Ministry of Interior
is reviewing a draft MOU to expand the program to these ports.
End Note.)


3. (C) The Megaports Initiative was ready for implementation in
Dubai in 2007; however, at the last minute, U.S. company SAIC
convinced Dubai Customs to incorporate its scanning equipment
into its designs for Jebel Ali in place of already-approved
equipment provided by DOE; the SAIC equipment includes an
integrated radiation detection and x-ray scanning unit. Since
DOE/NNSA had no prior information on the SAIC equipment, nor
information on its technical capabilities, DOE requested
additional testing prior to implementation.


4. (C) DOE has determined that the SAIC's equipment does not
meet the requirements of the Megaports Initiative, due to a high
rate of false alarms and inconsistent ability to identify SNM
when it is present. Based on conversations with SAIC, Dubai
Customs officials remain hopeful that the SAIC can update make
its equipment meet DOE requirements. Our understanding from
DOE, however, is that the problems are fundamental and cannot be
easily fixed. Even if SAIC were to make sufficient changes to
warrant a second round of testing, it is unlikely Dubai Customs
would receive new test results allowing them to move ahead with
implementation of the Megaports Initiative for at least one
year. As a result, DP World, the operator for Jebel Ali, is now
pressing Dubai Customs to move forward instead with proven
radiation detection equipment.


5. (C) Comment: We want to do all we can to push forward
implementation of the megaports initiative in Jebel Ali. Dubai
Customs officials did not attend a scheduled meeting with a
DOE-led delegation on December 7, 2008 to discuss the Megaports
Initiative. We do not know why, but it could be related to the
Eid Al Adha holiday. A more troubling possible explanation is
government pique -- the DP World head of security speculated
that Dubai Customs did not show up because of the UAE's concern
regarding DHS's "Strategic Trade Corridor Strategy" possibly
negatively impacting Dubai. Post will meet with visiting DHS
Secure Freight Initiative representatives on 14 December, and
hope to have a more complete understanding of SFI plans, with a
view toward addressing local any local concerns. End Comment.

SUTPHIN