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Wednesday, March 1, 2006 3:31 p.m. EST

Judge Rejects Ports Deal Probe

In a setback for the state of New Jersey, a federal judge Wednesday refused to order an investigation into the deal that would put an Arab company in charge of operations at Newark and other major U.S. ports.

U.S. District Judge Jose Linares also said the state cannot see documents the company gave to a federal committee reviewing the deal. The judge said the state "needs to show an immediate need for those documents."

Under the $6.8 billion deal, Dubai Ports World is to take over major commercial operations at ports in New York, New Jersey, Baltimore, Miami, New Orleans and Philadelphia. The state of New Jersey and other critics of the deal say it could compromise national security.

The Bush administration agreed Sunday to the company's request for a 45-day investigation of the deal's potential security risks; the judge on Wednesday said that review should be sufficient.

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  The Justice Department argued that Dubai Ports has already agreed to an investigation and that the documents sought by the state are confidential.

© 2006 Associated Press.

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