US-based Magna Park starting to take shape

Monday, Sep 06, 2010

Gulf News

Construction of first building underway

Dubai Economic Zones World announced the construction of the first building in Jafza Magna Park, its US-based, 1,324 acre logistics and distribution hub located in Santee, South Carolina.

The 20,000 square feet training centre and office will be a multi-use facility that will consist of shared office facilities, training laboratories and general warehouse space known as Leased Industrial Units.

Economic Zones World acquired over 1,300 acres just outside of the town limits of Santee in Orangeburg County in the fall of 2007.

Since then Jafza has pursued and received all the necessary regulatory requirements to begin development, including site certification from the South Carolina Department of Commerce.

The initial land development will be done in three immediate phases which include the construction of the mixed-use training facility and the development of 42 and 76 acres of plots respectively. The project is expected to attract about $1.2 billion (Dh4.4 billion) in private investment and generate an estimated 8,000 to 10,000 jobs over a decade.

“This building is a significant milestone for us at EZW, especially for the Jafza team on the ground in the United States. We are excited about the project and have spent time laying the ground work for it. This first step towards the realization of all the hard work is very rewarding,” said Salma Ali Saif Bin Hareb, chief executive officer of Economic Zones World.

“It is, above all, an encouraging sign of the global economic recovery and we hope it’s a stepping stone to many more great things to come at Santee,” he added.

County Council chairman Johnnie Wright said the facility will be a major asset to the region as well as the development of the Industrial Park.

“This is further confirmation of Jafza’s commitment to South Carolina and Orangeburg County. It is indeed a Great Day in Orangeburg County,” Wright said.

In addition to the US Industrial park project, Economic Zones World is currently engaged in numerous development projects across Asia (India, Malaysia and China); Africa (Djibouti); the Middle East (the UAE) and Europe (Belgium, the United Kingdom, Germany, Poland, Italy, Spain and France).

This building is a significant milestone for us at EZW, especially for the Jafza team on the ground in the United States. We are excited about the project...”

Salma Ali Saif Bin Hareb

CEO, Economic Zones World

Staff Report

Plans for Jafza training facility move forward

It seems that we are starting to see a trickle of information being released about Jafza. Stay tuned.

Ron

By PHIL SARATA, T&D Staff Writer | Posted: Tuesday, August 17, 2010 2:28 am |

There were no comments during a public hearing Monday on an ordinance authorizing a deed-lease agreement between the county and Jafza South Carolina, LLC. Orangeburg County Administrator Bill Clark said second reading will take during a special called council meeting, which could be held Aug. 23.Construction of a training building near Interstate 95 is one step closer to fruition thanks to agreements between Orangeburg County and several entities.

Stephen McCrae Jr., Jafza's attorney, said the company will deed five acres to the county for the development of the structure.

"At the same time, the county will lease that land back to Jafza with the responsibility on our part to construct a facility called The Training Center," McCrae said. "The funding for the construction will be through Tri-County Electric Cooperative. It has some funds from Rural Economic Development Land Grant and other funding.

"The construction must be completed by January 1 because we already have one tenant identified. This is a wonderful opportunity, not only for Jafza but for the county, which brought it to us."

McCrae said the tenant is an organization involved in workforce training. Jafza will have the sole responsibility for the building, including finding tenants and paying taxes.

Clark said Tri-County is able to obtain almost $1 million through REDLG, which it will make available to the county at no interest for ten years under a separate agreement. The agreement also allows for the deferral of payments for the first two years.

"These are extraordinary, beneficial terms that cannot be touched in the private sector," Clark said. Tri-County, "will have a separate agreement with Jafza to construct the building, which will make lease payments sufficient to cover the debt service on the loan.

"It's a win-win for all parties."

McCrae said the final terms of the agreement, such as the construction budget, still need to be ironed out. He promised the documentation, once completed, will be made available for public inspection before second reading next week.

"This is virtually risk-free for the county," McCrae said. "Jafza has land that will be made available to the county if there is a default on the lease."

Also during its Monday meeting, council agreed to enter an intergovernmental loan agreement with Santee Cooper for up to $4 million for ten years. Clark said the money would likely be used for the development of a regional wastewater facility in eastern Orangeburg County.

"We have a wastewater facility under permitting review right now that should become operational in the next two, three years," Clark said. "If we need funding assistance to proceed with the development of either the water or the wastewater utility systems in that area, Santee Cooper has just made themselves available as a partner, if needed."

If the county were to use any of the Santee Cooper funding, "payment would not occur until either six months after the facility was constructed and permitted to operate, or two years from the time the funds were drawn down," Clark said. "Principal payment could be deferred to the end or be prepaid at any other negotiated period."

Santee Cooper spokesman Mollie Gore said the agreement must win approval of that utility's board of directors next week before it becomes final.

"This arrangement would be similar in structure to an agreement Santee Cooper had with Berkeley County in order to help attract development," Gore said.

In other action council:

* Unanimously gave final approval to a new county waste tire policy. Clark said accepting the policy keeps the county eligible for waste tire funding from the state.

* Awarded South Carolina State University Head Football Coach Emeritus Willie Jeffries a resolution of honor in recognition of his accomplishments in the field of athletics and role in community service to Orangeburg County. Jeffries was inducted into the College Football Hall of Fame July 17.

* Entered executive session to discuss economic development, including the terms of the Jafza agreement.

Contact the writer: psarata@timesanddemocrat.com or 803-533-5540.

Site sought for new Army Reserve Center

It looks like things are starting to heat up. I hear that Jafza is going to have a ground braking in October. Ron


By GENE ZALESKI, T&D Staff Writer | Posted: Friday, August 13, 2010 4:18 am | (2) Comments
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SPECIAL TO THE T&D
The U.S. Army provided this sketch of a design for an Army Reserve Center, indicating the new $11.6 million center planned for the area would be similar.

The U.S. Army wants to purchase land within a 50-mile radius of the Orangeburg area for the construction of an Army Reserve Center.
Public Affairs Specialist Ken Beyer says leads are currently being sought for available land.
"We are only ... in the ‘looking for property' stage so there are no properties under consideration yet," Beyer said.
The Army hopes to purchase a 15-acre tract of land that has no environmental problems, is in close proximity to utilities, has good vehicle access and visibility, is suitable for construction of the center and is within budget.
The project will include a 34,000-square-foot training building, a 5,000-square-foot maintenance shop, a 2,000-square-foot unheated storage building and a 5,800-square-yard parking area.
Beyer said the time-frame is uncertain for construction of the facility but the $11.6 million project will be funded in the 2012 fiscal year budget.
The work will include land clearing, paving, fencing, site improvements and utility extensions.
"The new facility will be occupied by the eight Army Reserve units currently occupying the existing Orangeburg Memorial United States Army Reserve Center," Beyer said. The existing center is located on John C. Calhoun Drive across from Superior Honda in Orangeburg.
He said the new center will provide administrative, assembly, library, learning center, vault, weapons simulator and physical fitness space for the reserve units. The maintenance shop will provide work bays and administrative support.
Beyer hesitated to place an economic impact assessment on what the reserve center could mean from a dollar or jobs standpoint. However, he said soldiers will use local colleges and universities and spend locally. In addition, he said local catering businesses will provide meals for the soldiers, and local contractors will benefit from building maintenance projects.
Once the new center is built and occupied, the old Reserve Center will be considered "excess property" and "more than likely returned to the city," Beyer said. Options could be to convert the building into a homeless shelter, sell it or transfer it for use as a public facility, he said.
Gregg Robinson, Orangeburg County Development Commission executive director, says the county has been in contact with the U.S. Army for the past 30 days and has responded to the Army's request for a proposal.
"We have several properties that fit the criteria of the Army," Robinson said. "We would obviously like to place this facility in Orangeburg County. Folks are interested in the Orangeburg area due to our location, and the Global Logistics Triangle works for manufacturing and for the military. Orangeburg County is important logistically with the connectivity (it) offers."
In addition, the area is ideal because of its restaurants and the interstate, he said.
Robinson said the military sector fits in well with the county's future development plans.
"The Army is a very important part of Orangeburg County," he said, noting that supporting and training the Reservists to protect the nation's interests is very important.
"The beauty of having a facility of that quality in our community is the derived externalities that (will come) from other military investments."
More restaurants and service stations could be a part of the spin-off, Robinson said.
"We continue to work with a number of different types of projects," he said. "We are trying to make sure we have a competitive environment of growth for the county."
Contact the writer: gzaleski@timesanddemocrat.com or 803-533-5551.
Copyright 2010 The Times and Democrat. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Hilliard, Gilmore file in Santee mayoral race Seabrooks not seeking re-election

By MARTHA ROSE BROWN, T&D Correspondent Friday, March 05, 2010

Mayor Silas Seabrooks, who says he’s served the town as mayor for a total of 22 years, declined to comment about his decision not to run for another four-year term. He said he would comment about the upcoming election and his reflections on his service to the town at a later time.

Two candidates have entered the mayoral contest: Santee Town Councilman John Mark Gilmore and Donnie L. Hilliard, former Santee town administrator and Orangeburg County administrator.

Also up for grabs are two seats on Santee Town Council.

Incumbents Cleveland Gilmore and Shirley Upton are seeking re-election, and challengers Roosevelt Hezekiah and Gregory S. King are also vying for a seat on council.

Terms for both the mayor’s job and the council seats are four years.

Santee Town Clerk Rebecca Wright said no write-in candidates filed. Filing for candidates ended Feb. 12.

When Santee voters head to the polls next month, they will have the option of choosing a mayor and two of the four candidates to serve as council members.

According to the Orangeburg County Office of Voter Registration and Elections Commission, Santee residents not yet registered to vote in the April 13 election must register by March 13.

The polls will be open from 7 a.m. to 7 p.m. on Tuesday, April 13, at the Santee Family Development Center at 210 Brooks Blvd. near Santee Town Hall.

The Municipal Board of Canvassers will hold a certification hearing to determine the validity of all provisional ballots cast in the municipal election at 11 a.m. on Thursday, April 15, in the Council Chambers at Santee Town Hall.

Contact the writer: marfawose@aol.com.

Largest ship to visit Charleston docks at Wando Welch

From the Charleston Business Journal
Staff Report
Published Feb. 25, 2010

Mediterranean Shipping Co.’s Golden Gate service made its first call today on the Port of Charleston, linking the Southeast’s deepest seaport with China, Southeast Asia and the Middle East.

The first vessel to arrive in Charleston as part of the service, the MSC Rita, got here overnight and is working today at the Wando Welch Terminal.

The 1,065-foot-long Rita is the largest ship to ever come to Charleston. The only other vessel docked at the port today that came close to Rita’s size was the 850-foot Ville D. Aquarius. The smallest vessel in port on Thursday was the 383-foot Ocean Titan. The MSC Rita can hold 8,034 TEUs (20-foot equivalent unit container).

“Importers and exporters across the U.S. Southeast and Gulf region will benefit from additional connections into China, Southeast Asia, the Middle East and India through Charleston,” said Jim Newsome, president and CEO of the S.C. State Ports Authority.

The GGS port rotation includes Shanghai, Ningbo, Chiwan and Yantian, China; Singapore; Salalah, Oman; Suez Canal transit; New York; Baltimore; Norfolk; Charleston; Freeport, Bahamas; Suez Canal transit; Jeddah, Saudi Arabia; Colombo, Sri Lanka; Singapore; Chiwan; and Hong Kong.

Additional connecting services offer links to ports in India, the Red Sea and the Middle East. The Golden Gate service also provides a 21-day transit time outbound from Charleston to Jeddah.

Charleston has the deepest water south of Norfolk on the U.S. East Coast, with a 45-foot deep shipping channel at mean low water, which is the average depth of the shipping channel at low tide. A five- to six-foot tidal lift allows ships with up to 48 feet of draft to transit the harbor.

The Rita has a maximum draft of 47.5 feet.

MSC already sends five ships a week to Charleston serving the western Mediterranean, South American, Caribbean, African and European trades.

In 2009, MSC and the SCSPA signed a new five-year extension to the carrier’s contract, lengthening its commitment in Charleston to 2017.

C of C president keeps up talk of port issues

From the Post and Courier

College of Charleston President George Benson in 2008 raised more than a few eyebrows when, at a Charleston Metro Chamber of Commerce economic outlook conference, he chastised his new home city for not taking better care of its maritime industry.

"There apparently is insufficient support for port growth, even within the region's business community," he said. "That's a problem."



Photo by Grace Beahm

College of Charleston President George Benson, who cut his teeth in academics as a research economist, said he thinks the local port has a bright future but remains largely underappreciated.
When Benson spoke at a Propeller Club of Charleston luncheon last week, he echoed those sentiments, with a little added context.

"Seaports are almost the most invisible sector of our economy," he said. He characterized South Carolina's port assets "underappreciated."

Benson, who previously served as dean of the Terry College of Business at the University of Georgia, offered a few reasons while a rival port in Savannah caught up with and then surpassed Charleston: Georgia has a strong governor system instead of the fractured power structure operating in South Carolina; lawmakers in Atlanta are farther removed from the people of Savannah, who are most significantly impacted by port-related decisions; and Charleston's larger population means more people scrutinize port decisions here.

Benson credited new S.C. State Ports Authority Chief Executive Jim Newsome with a future that "looks bright" for the agency. He also expressed his support of growing the cruise industry, noting, "The bigger the ship, the more cash and credit cards it carries onboard."

Driving Economic Development in the U.S. Southeast

by Ken Krizner

The Southeast U.S. has a number of critical site location factors that make it a highly attractive region for expansion and relocation projects. The region’s manufacturing sector has been transformed during the past two decades by a number of foreign automaker production plants. Leading retailers have located distribution centers in the Southeast to receive inbound shipments from overseas.

Those factors include a high quality of life, states that have right to work laws and ample funding for workforce training programs and other incentives, low taxes, and a moderate climate.

The region also has a well-suited infrastructure in place, with numerous ports on the Gulf of Mexico and Atlantic Ocean, rail access via CSX and Norfolk Southern, a highway system that can accommodate heavy truckloads, and airports. As opposed to other regions of the country, the metro areas of the Southeast are connected to each other by just a few hours’ drive, says Tim Feemster, senior vice president, director of global logistics for commercial real estate advisory firm Grubb & Ellis Co.

Europe- and Asia-based automakers continue to drive economic development in the Southeast, creating a region-wide phenomenon that has transformed the manufacturing landscape. South Korea-based Kia Motors is the latest foreign automaker to launch production in the Southeast, beginning operations in West Point, Georgia in November.

Germany-based Volkswagen has begun installing equipment at its new plant in Chattanooga, Tennessee, which is expected to being production in 2011. The automaker received more than 65,000 applications for the production work force and about 30,000 applications for skilled maintenance and professional positions. Hiring will begin in early 2010, and Volkswagen expects the plant to generate about 2,000 jobs.

Mercedes is expanding its complex in Vance, Alabama, where it will spend $150 million for a 200,000 square-foot expansion of the body shop, and it will spend $140 million for equipment and process upgrades, including more robotics, in other parts of the facility. Toyota, meanwhile, is building a $1.3 billion plant in Blue Springs, Mississippi, which will employ about 2,000 workers to build the Prius. Toyota currently has production facilities in three Southeast states—Alabama, West Virginia, and Kentucky.

“The [automobile] industry has an economic model that generates jobs—both direct and indirect,” Feemster says. “The cost of labor [in the region] is good, as is the demographics of the labor. There is a skilled workforce.”






A solid distribution and logistics foundation

Retailers, too, are finding an attractive environment to expand their distribution facilities in the Southeast. Many retailers have distribution centers near the Port of Savannah (Georgia). Savannah is the nearest port to Atlanta, the largest metropolitan area in the region.

“[Savannah] is the closest port to the largest consumption zone in the region,” says Jeb Atkinson, vice president of the Corporate Services Group for ProVenture, a Brentwood, Tennessee-based national real estate advisory and corporate services company.

Wal-Mart operates a distribution center inland from the port and leases substantial warehouse space within about 5 miles. IKEA operates a 1.7 million square foot facility.

Other retailers, such as The Home Depot, Dollar Tree Stores, Lowe’s, and Target, also have distribution facilities at or connected to the Port of Savannah.

Other ports in the Southeast are also home to retail distribution operations. Supermarket chains Winn-Dixie and Publix have major distribution operations at the Port of Jacksonville (JAXPORT) in Florida. In addition, the Port of Miami is the gateway to inbound and outbound cargo shipments to and from South America, Central America, and the Caribbean.

The Southeast ports are more frequently receiving cargo shipments from Asia via the Panama Canal or Suez Canal. Retailers cite cost—ocean freight is less expensive than rail or truck—avoiding the congested California ports in Los Angeles and Long Beach, and more direct access to the heaviest U.S. population areas as the reasons.

Southeast ports are servicing the eastern seaboard and markets between 250 and 500 miles away, Feemster says. “An all-water route is less expensive,” he points out. “The longer you can extend your supply chain through the cheapest mode of transportation, the better it is. We’re producing a lot of consumer goods in China and 77 percent of the U.S. population is east of Texas.”

Logistics has been a primary economic driver in Charleston, S.C., for more than 300 years. That has led to a deep and growing pool of workers involved in all aspects of transportation and logistics. The region’s employment in transportation and materials handling occupations grew 12 percent between 2000 and 2008, compared with a 1 percent decrease in such employment nationwide, according to the Charleston Regional Development Alliance (CRDA).

Area colleges offer a number of programs relevant to the industry. “We have a full spectrum of education that allows for the training of a good work force,” remarks David Ginn, president and CEO of CRDA.

The state of South Carolina offers companies an infrastructure and market access that allows them to transport product to national and international markets by way of an expansive network of railways, airports, and highways.

There are about 260 distribution and logistics operations in the state. A distribution site in South Carolina is located within 1,000 miles of 35 states and roughly 75 percent of the total U.S. population.

Retailers such as Wal-Mart, Target, QVC, The Home Depot, Starbucks, and Walgreens have established distribution operations in the state. Wal-Mart has two distribution centers in South Carolina, which serve as super-regional distribution centers. They were chosen because of the strategic location to the company’s Southeast U.S. operations, with easy access to several interstates.

At least 30 percent of distribution facilities operate through the Port of Charleston, which is able to serve ships of up to 8,000 TEUs with only a 20-minute turnaround time for truckers. All terminals at the Port of Charleston are within 2 miles of interstate highway access.

Intermodal hubs are also a key component for the state, and Jafza International will create such a hub for its international operations at a 1,300-acre complex in Orangeburg, S.C.

Dubai, United Arab Emirates-based Jazfa’s hub will include facilities for warehousing, manufacturing, and distribution. The company expects to make an investment of between $600 million and $700 million in its Orangeburg operations during the next 15 years. wt