Crisis Firm's $1.5B Port Project Aims to Heighten US Investment in Africa
The Texas businessman behind the project, Michael Guidry, says the port represents an opportunity for the U.S. to establish a significant presence in North Africa, which has 1,100 miles of coastline, before the Chinese stake a claim.
February 20, 2019 at 03:31 PM
5 minute read
Texas businessman Michael Guidry says he has a $1.5 billion plan to help the U.S. gain a strategic foothold in Africa, which he says is being overrun with investors from other countries, primarily China.
For the past three years, Guidry has been laying the groundwork for what he envisions as North Africa's “most highly-automated and largest deep sea port.” He wants to build the port on the coast of the Mediterranean Sea near the town of Susah in oil-rich Libya. But first he needs investors.
Guidry is the founder and CEO of security services and investment firm the Guidry Group, which is increasing its focus on developing infrastructure and has been “a global leader for kidnap and ransom resolution, security services, and crisis response/management,” according to its website.
In late January, Libyan government authorities gave the Guidry Group approval to move forward with the port deal. At the time, Hassan Jwaili, a seaport chairman of Eastern Libya, said in a prepared statement that the port was “projected to generate tens of millions of dollars in its first year alone.”
Guidry said in an interview Tuesday that he was in the midst of discussions with two potential U.S. and European investors, but declined to provide additional details, citing a nondisclosure agreement.
For Guidry, the Port of Susah project represents an opportunity for the U.S. to establish a significant presence in North Africa, which has 1,100 miles of coastline, before the Chinese stake a claim.
China has built ports, roads, railroads and other infrastructure throughout Africa and is already the continent's biggest trading partner.
“China has always been looking at places for foreign investment. They're looking all around the world. Africa has been a prime target for Chinese for mineral access,” said Adams Lee, an international trade lawyer at Harris Bricken in Seattle who represents American and Chinese companies. “A port project seems like it would be an interesting target for Chinese heavy industrial development.”
In 2017, there were more than 10,000 Chinese-owned firms operating in Africa, primarily in the southern regions, according to a report from global management and consulting firm McKinsey & Company. The study also found that Africa-China trade had been growing by about 20 percent per year.
“All I see every time I go to Africa are more and more Chinese,” Guidry said. “It's the richest continent in the world. It has minerals, oil, gas … anything you can think of. The Chinese see Africa as the gem of the world and have been moving into it for probably the past 20 years. They pretty much have a stronghold in just about every country in Africa.”
Except Libya, according to Guidry. He said, “If we lose Libya then we've lost almost all of North Africa. We've already lost South Africa.”
Assuming he can secure the necessary investors, Guidry hopes to break ground on the Port of Susah in October, which he said will be the “biggest infrastructure project Libya has ever had.” He dismissed concerns about possible government corruption or security threats, though he acknowledged that Libya's capital, Tripoli, where militias have been fighting for control of the city, is “the only negative side” of the country.
Libya remains on the U.S. Office of Foreign Assets and Control's list of sanctioned countries. And the U.S. State Department has warned residents to avoid traveling to Libya due to “crime, terrorism, civil unrest, and armed conflict.”
“Any U.S. interest would have to be careful about who they're dealing with and how they're interacting with Libya,” said Lee, the international trade lawyer in Seattle. “They don't want to cross those tripwires that sanctions have set up.”
He added the U.S. is “facing global competition more and more from the Chinese. And so I think this project sounds interesting, but because of where it's located and the type of project it is there will be all sorts of complications.”
Read More:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllHow Amy Harris Leverages Diversity to Give UMB Financial a Competitive Edge
5 minute readDog Gone It, Target: Provider of Retailer's Mascot Dog Sues Over Contract Cancellation
4 minute readLululemon Faces Legal Fire Over Its DEI Program After Bias Complaints Surface
3 minute readGC Conference Takeaways: Picking AI Vendors 'a Bit of a Crap Shoot,' Beware of Internal Investigation 'Scope Creep'
8 minute readTrending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250