February 4, 2008

Jafza Selects Charleston's ATM as Lead Consultant

Dan McCue  /  Charleston Regional Business Journal

Applied Technology and Management of Charleston has been chosen to spearhead the first phase of Jafza International's development of a 1,300-acre logistics, distribution and manufacturing center that the Dubai-based firm is developing in Orangeburg.

ATM is now responsible for overall management of the program, including overseeing the letting of contracts for the project, making onsite engineering and planning decisions and coordinating the initial buildout on the site. It will also work with Jafza officials and government agencies on planning and implementation of support infrastructure.

ATM is partially owned by the government of Dubai through a development firm called Island Global Yachts, in which the royal family of Dubai holds a large equity stake. The company has locations in South Carolina, Georgia, Florida, Rhode Island and Dubai.

Tony Maglione, ATM's vice president and manager of the Jafza Orangeburg Project, said the company has established a project-specific e-mail address, SCPROJECT@appliedTM.com, so that interested parties can inquire about contracting opportunities related to the project. "These kinds of projects don't come along very often and it presents us with a fun challenge," Maglione said. "We're really excited about it."

Firm's Preliminary Work

ATM performed preliminary site work on the Orangeburg site for Jafza late last year. At the site, ATM looked at wetlands on the property and, together with Jafza officials, determined that the best approach would be to leave the wetlands as they are and install wooden bridges and walkways to incorporate natural areas into walking trails and recreation areas. Maglione said ATM's selection came after several other firms with management and engineering expertise were vetted.

Located near the town of Santee in Orangeburg County, Jafza International's logistics park is projected to create 8,000 to 10,000 jobs over the next decade and attract private investment of about $1.2 billion, according to Chuck Heath, Jafza International's managing director.

Among the beneficiaries of the Jafza's Orangeburg logistics hub will be two recent ATM clients, the ports of Charleston and Savannah.

Founded in 1984, ATM has provided consultation and engineering services for a wide range of coastal and waterfront development projects. Its expertise lies in the management of large-scale developments, environmental permitting, hydrological modeling, wetland permitting and management, and corporate financial and information technology management.

ATM was the lead consultant selected by the U.S. Army Corps of Engineers to work on the Environmental Impact Statement for the S.C. State Ports Authority's planned terminal at the former Charleston Naval Base. It has also completed environmental work for projects at and around the Port of Savannah.

"This project is the cornerstone of Jafza's venture into the United States," Heath said. "One critical element is to make South Carolina part of a wider network of logistics and distribution parks."

Project Making Steady Progress

The selection of a project management company is the first real public sign of progress that's been made on the venture since Jafza International bought the Orangeburg site last October. Behind the scenes, however, representatives of the company have been meeting with state and local officials, representatives of the S.C. State Ports Authority and others, laying the groundwork for actual development of the logistics park.

Among the issues being discussed are the possible location of a headquarters for Jafza's North American operations, the timing of the creation of a project office near the Orangeburg County site and the future configuration of the U.S. Highway 301 and Interstate 95 interchange.

Throughout the preliminary planning process, Jafza officials have been stressing their desire to develop their site in a sustainable fashion that will complement other development occurring in the region, said officials privy to the discussions. According to attendees of one recent session with Jafza's representatives, much of the discussion focused on the need for careful and comprehensive planning to ensure that South Carolina doesn't become "a strip mall of commerce parks."

"They emphasized that going forward it's vital to have comprehensive, well-thought-out plans in place for future economic and infrastructure development in place," said one official who asked not to be identified. "That way you can have growth without diminishing the South Carolina experience."

Jafza officials said ATM's existing ties to Dubai will make for efficient coordination with the company's in-house engineering office. In addition, company officials said they were impressed by ATM's competency and commitment to diversity in hiring and contracting, and its estimates of tasks and timelines.

Maglione said he doesn't anticipate any hiring to augment the current staff of 27 in ATM's Charleston office. "Basically, over the next three quarters, we're going to lay all the groundwork for future development of the site, looking at everything from highway access to the marketing needs of the site," Maglione said. "At this point we've just started writing the scope of the business plan and getting into the due diligence work that needs to be done for any project," he said.

"Just yesterday we finished writing the first draft of requests for proposals for the marketing and business assessment and the environmental due diligence work. Hopefully, we'll be releasing those real soon and be getting contractors and consultants on board. I guess you could say that in a way, I'm the local referee for the project," Maglione added.