THE ISSUE: Distribution and logistics in S.C.
OUR OPINION: Capitalizing on location is essential for state
Jafza International makes no secret of its reasoning for selecting Orangeburg County for a $700 million logistics, light manufacturing and distribution hub on 1,300 acres near Santee: location.
South Carolina is positioned to become a leading site for importing and exporting as emphasis moves away from the West Coast ports and to the Southeast. Orangeburg County is ideally positioned just inland from the Port of Charleston and within easy reach of the Port of Savannah. Interstates 95 and 26 intersect here.
Jafza is just one logistics firm that has found South Carolina ideal.
Over the past several years, distribution and logistics operations have grown both as a result of state recruitment efforts and private investors. Private investors such as Hillwood, Childress-Klein, Johnson Development, Lauth and Jafza have made or plan to make significant investments to construct distribution and logistics developments throughout the state.
Today there are approximately 260 domestic and international distribution and logistics operations in South Carolina.
Annually, approximately 2,000 ships and barges representing 40 different shipping lines use the services of the S.C. State Ports Authority. Nearly $61 billion in cargo passed through the Port of Charleston in 2007. Major companies with offices in South Carolina, such as BMW and Starbucks, use the port to ship products across the globe. In all, about 700 firms in the state ship products through the port.
With South Carolina and Georgia now partnering to develop another port along the border in Jasper County, the state is further positioning itself to be a major player in logistics and distribution. Development surrounding the centers will be a boon for the state.
It is logical that the S.C. Department of Commerce join forces with the S.C. Ports Authority in emphasizing logistics development. The two are doing so by creating the position of senior project manager.
John D. Scarborough, the former economic development director for Berkeley County, has accepted the post. His mission will be not only to work to recruit industrial investment to South Carolina but to work in coordination with the SCSPA to capitalize on the recruitment of distribution and logistics centers.
“This position is a natural and necessary element of establishing an economic development team effort in our state. The Port of Charleston is a major benefit to Commerce’s recruitment efforts.
Having a project manager at the SCSPA will enhance the work that is already being done to recruit industrial development and distribution operations by companies that also utilize the port,” Secretary of Commerce Joe Taylor said.
Consider the Jafza development alone is expected to attract about $1.2 billion in private investment. The number of jobs that will be generated is estimated at between 8,000 and 10,000, an unprecedented boost for any economy, particularly one such as Orangeburg’s.
Distribution and logistics operations present great opportunity because of South Carolina’s proximity to markets, quality and ports. Teaming the Department of Commerce and the Ports Authority in a focus on said development is another move in the right direction.