Jafza would bring long-needed opportunity to area's poor, officials say
By GENE ZALESKI, T&D Staff Writer Sunday, October 14, 20071 comment(s) | Default | Large
William Green grew up in Orangeburg, graduated from Orangeburg-Wilkinson High School and later from South Carolina State University.
Upon graduation, Green moved to New York and now lives in Atlanta where he works as an account executive with AT&T.
He left because, "there were no job opportunities." Before he left home, he sought management positions with fast food restaurants and an industry, but he says there wasn't enough to quench his thirst for greater opportunities.
"When you go to school and graduate, you have high expectations," he said. "You don't want to waste a degree."
Traveling as a member of the S.C. State band, Green says he saw greener pastures elsewhere.
"I was exposed to different cities and places and saw they had better opportunities in those places," he said.
Green is an example of what Orangeburg County economic development officials say is a "brain drain" of bright students from the area.
"We are losing talented individuals to other opportunities," Orangeburg County Development Commission Executive Director Gregg Robinson said. "If we create opportunities, we will not lose these individuals."
Robinson said job migration statistics reveal that between 6,000 to 7,000 Orangeburg County residents drive elsewhere each day for work. Of the 41,000 employees in the county, about 27,000 are considered underemployed.
So when Jafza International, a subsidiary of Dubai World, announced plans to build a $600-700 million logistics megahub near the Santee, Robinson and other area leaders were pleased. Robinson said this is just the type of "company the state of South Carolina wants, and the type of company Orangeburg County needs."
The planned development could employ between 8,000 and 10,000 individuals, company officials say.
Poor numbers
The Santee area is no stranger to poverty.
Taking a closer look at the region where Jafza looks to develop, the 2000 Census shows about 23 percent (13,094) of the 57,080 residents who live within a 20-mile radius of the Santee area were identified as poor.
According to the U.S. Census Bureau's more recent 2006 American Community Survey, Orangeburg County's poverty rate is about 29 percent and its unemployment rate hovers at about 10 percent.
The survey, which looked at counties with populations greater than 65,000, ranked Orangeburg County as having the nation's 10th highest poverty rate. Poverty is defined as a family of four having an income of $20,614 or less or individuals making $10,294 a year.
The survey revealed that 22 percent of all families and 53 percent of families with a female householder and no husband present had incomes below the poverty level.
About 33 percent of children under 18 were below the poverty line, compared with 20 percent of people 65 years and older.
The survey revealed that 73 percent of the people 25 or older graduated from high school and that one in seven have at least a bachelor's degree.
The median income was $29,700 and the unemployment rate fluctuates between 8 and 13 percent. The county's largest employer, Husquvarna, a lawn equipment manufacturer, has regular layoffs due to the cyclical nature of the industry. The layoffs cause the unemployment rate to spike periodically.
Robinson said the county has worked to address the issue over the past five years. The commission has helped to create about 1,332 new jobs with investments totaling about $430 million, he said.
Robinson says the county works with industries who provide jobs of any kind, but seeks those that pay high wages and have attractive benefit packages. Higher-wage companies are provided greater incentives and those not meeting the wage threshold are encouraged to do so.
'Corridor of Shame'
In light of the economic plight of the region, Robinson said county economic development officials have been looking to develop the Interstate 95 corridor for a long time.
"We have been looking at that area for the last few years," Robinson said of the 1,322 acres of Orangeburg County land Jafza has purchased.
The land is in the region marketed by the county as the Global Logistics Triangle. The triangle, which consists of the area in and around U.S. 301, I-26 and I-95, has been touted as prime real estate for the development of a logistics and distribution center.
Robinson said I-95 from Florida to Virginia is one of the least developed corridors of interstate highway frontage in the Southeast. The South Carolina stretch has been dubbed the "Corridor of Shame," because of the rural, mostly poor counties that line it.
"People are not stopping," Robinson said. There are 70,000 motorists a day that travel up and down I-95 with little reason to spend time in South Carolina, he said.
State Sen. John Matthews, D-Bowman, said "We have a high concentration of poverty in that area."
Historically, the area has been the cotton belt of farming, he said. Generations suffered as the state did little to help it change from a "muscle-based" economy into an "intelligence-based" economy.
"We were not prepared to make the transition. We kept economic growth down," he said.
But Matthews said the vision is changing thanks to aggressive economic development leaders and a state ready to take the next step.
Matthews said economic development will be aided by the Lake Marion Regional Water Authority, which is being built to provide water to municipalities in Orangeburg, Calhoun, Dorchester, Clarendon, Sumter and Berkeley counties. The Clyburn Connector, a controversial road-and-bridge project linking the communities of Lone Star and Rimini, would further help the area, he said.
Matthews said the area could become an "economic center of energy" that will encompass and radiate out beyond Orangeburg County.
Orangeburg County development officials say there's adequate infrastructure in place to serve a project of Jafza's size, but the Lake Marion Regional Water project will be the key to sustaining long-term growth.
Officials believe the first phase of the $118 million water project will be complete by the end of the year. The system will provide water to Elloree, Holly Hill, Santee, Summerton, Manning and Harleyville in its first phase.
A legislative study of the I-95 corridor revealed that the state basically has two populations. There are those in 14 counties with 65 percent of the state's wealth, and those in the other 32 counties with 35 percent of the wealth. The wealthier part runs roughly along the I-85 corridor, I-20 and the coastal counties.
The I-85 corridor accounts for about 100 miles, but has five times the infrastructure of the I-95 corridor. I-85 connects the economic centers of Atlanta, Greenville, Spartanburg and Charlotte.
Robinson said other than Florence with its Pee Dee Commerce Center, a 717-acre park adjacent to I-95 and S.C. 327, and other, smaller industrial parks scattered throughout Colleton, Clarendon, Lee and Sumter counties, there is little else along the interstate.
South Carolina's average per capita income is 82 percent of the national per capita income, he said, but the more affluent I-85 Corridor competes with the national average.
Along I-95, however, the per capita income of blacks is 30 percent less than the average for South Carolina whites at every educational level -- comparing professional to professional, technology degree to technology degree, even drop-out to drop-out.
The study revealed 9 percent of African-Americans have bachelor degrees along the corridor, with African Americans having 40 percent more children while making 30 percent less money.
According to the most recent data, considering those in the 18-45 age group, only 15 percent of jobs in the area are for unskilled workers, which make up 52 percent of the population. Sixty-two percent of the available jobs require a two-year degree, and 22 percent a four-year degree.
Calvin Wright, executive director of the Orangeburg-Calhoun-Allendale-Bamberg Community Action Agency Inc., said his agency has had a presence in the eastern end of the county since its formation about 40 years ago.
"It is a deprived area of our county where we need industry and we need jobs that pay a decent salary and jobs that pay a livable wage," Wright said. Efforts to further develop the area are "right on," he said.
"Everything we need is there. The people, the land and we are working on the infrastructure now. There is no doubt that it would be a boon for this county's low-income individuals," Wright said. He said incentives should be provided to companies that employ low-income people.
In answer to those who are concerned about the impact of Jafza on the area's "Oasis of Recreation" lifestyle, Wright said the history of the region has been one of plight and lack of opportunity and needs to change.
"There have been lifelong residents of the area who have invested in the area and supported the government for a number of years," Wright said. "They deserve some return on their investments."
But why has the area taken so long to develop?
Wright says he thinks much of it has to do with the "power base" historically being located in Orangeburg, which is natural since it's the county seat.
"As we talk about looking globally, we need to look countywide," he said. "I think the demography of the area and all that has played into it. Those not looking at that are not really looking at the full scope of it."
Robinson: 'Jafza is what Orangeburg County needs'
Officials have said Jafza's project would transform the predominately rural and poverty-stricken area of the county.
And so Jafza's plans for the U.S. 301 and I-95 interchange -- which has the infrastructure in place to handle distribution and logistics -- is the treasure in a field the county has been looking for, Robinson said.
Jafza, which specializes in free trade zone management and advisory services, plans to build a logistics hub officials say would be similar to Dubai's Jebel Ali Free Zone, which covers about 35,000 acres and is considered among the fastest-growing free trade zones in the world.
About 6,500 international companies are operating out of the zone, with about 140 of those being Fortune 500 companies, according to Jafza.
Robinson said the Santee project would eventually be designated a Free Trade or a Foreign Trade Zone. In an FTZ, foreign and domestic merchandise is considered international commerce, paving the way for a reduction or elimination of customs duties.
Duty-free treatment is given to items that are processed in FTZs and then re-exported. Duty payment is deferred until they are brought out of the FTZ for sale in the U.S. market. The S.C. State Ports Authority is responsible for approving and granting FTZ applications.
Jafza would be responsible for the development, management and marketing of the Orangeburg County megahub while U.S. Customs and Border Protection, which is a part of the Department of Homeland Security, would be responsible for supervision of the FTZ.
Robinson said the county is working on other economic development projects, including the development of the 220-acre Phase II of the Orangeburg County/City Industrial Park, the start-up of the 541-acre John W. Matthews Industrial Park and the future development of the I-26 and I-95 interchange, which currently does not have water, sewer or rail access.
In addition, the county is working with local educational institutions to improve the skills of students, Robinson said.
While some have criticized the Jafza project as a "giant truck stop," Robinson said, "Logistics are sophisticated these days."
"Distribution centers are very sophisticated, highly robotic, computerized and very efficient," he said.
Robinson said Jafza will help bring additional companies to the area and put a dent in the struggles the county has experienced.
"If we create opportunity locally, I know they will stay," Robinson said. "They will make money ... and raise a family and add value to our school system and contribute to our economy."
Green, in the meantime, said he wanted to contribute to the area's economy.
He expressed his thankfulness to the local leadership for their "pushing the envelope" in trying to bring jobs to the county.
"Some people will ask the question, 'Why should they invest in Orangeburg County?'" Green said. "You have to change that way of thinking. Atlanta was not always Atlanta before. You have to start somewhere."
Green says he believes Jafza would create an "overall better lifestyle" for people in the area.
"If it does not happen now, you will lose another generation," he said.
T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories online at TheTandD.com.
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JohnnyDollar wrote on Oct 15, 2007 2:15 AM: