By Dan McCue

ORANGEBURG -- If you build it, they will come.

That was the phrase, borrowed from the movie “Field of Dreams” that was used repeatedly by representatives of Jafza International this week to describe their interest in potentially establishing a logistics “megahub” in Orangeburg or other locations in the Southeast.

Individuals privy to the conversations between officials here and the delegation representing Dubai said those speaking for the oil-rich nation about its potential $600 million to $700 million investment in Orangeburg’s Global Logistics Triangle were untroubled by the prospect of setting up shop first and waiting for the demand for their services to build.

If the deal comes to pass, the huge logistics park, anchored by warehouses, distribution centers and light manufacturing, could create up to 10,000 jobs in the economically hard-pressed Interstate 95 corridor of the state.

"They were very positive, very optimistic, but also very grounded and all about making sound business decisions," said one individual who met with the group and asked that his name not be used.

Jafza International, a subsidiary of Dubai World, a holding company wholly owned by the Dubai government, is making its first foray into the United States. However, some of its sister companies under the Dubai World umbrella—each completely independent of the other, with its own corporate management and decision-making process—have been active here in recent years.

Even as controversy raged in Washington in 2005 over Dubai World’s purchase, through subsidiary DP World, of the British Peninsular and Oriental Steam Navigation Co., an acquisition that temporarily gave it ownership of several U.S. ports, another subsidiary, Istithmar, was buying some of the United States’ most prestigious real estate.

These acquisitions included New York's fabled Knickerbocker Hotel at Broadway and 42nd Street, which it bought for $300 million; 450 Lexington Ave., a 40-story tower at 45th Street, which it bought for $600 million; and 230 Park Ave., a gold-crowned 34-story tower between 45th and 46th streets, for which it paid $705 million.

"In many respects Dubai has been the driver of New York’s red-hot real estate market," a member of the delegation said.

And that activity continues, with the Dubai firm recently announcing that it had entered into a long-term strategic relationship with the MGM Mirage hotel in Las Vegas.

In addition to a direct investment of $5 billion in the hotel, Dubai World and MGM Mirage have also entered into a 50/50 joint venture in the landmark City Center development in Las Vegas.

The 76-acre mixed-use development project on the Las Vegas strip will include multiple high-rise buildings, including a 4,000-room luxury hotel and casino, two 400-room non-gaming boutique hotels, 2,700 luxury condominiums, and a 500,000-square-foot retail and entertainment district.

While New York and Las Vegas might seem remote from the task of moving cargo through the Southeast, these deals laid the groundwork for Jafza International’s interest in the United States.

At the time the ports controversy was swirling, Jafza International was beginning to solidify its logistics fortunes overseas. As a member of the company’s delegation said on Thursday, the idea was to grow the company in a series of concentric circles, and “the U.S., being nine hours away, really wasn’t of interest to us.”

At the urging of an executive at one of its sister companies, however, Jafza International undertook a demographic study last year which showed that the population shift to the Southeast was growing in the United States, that cargo was surging through Southeast ports, and that the window of opportunity—namely in terms of available space—was quickly closing.

“The idea to look in the U.S. was presented to us by one of our affiliate companies, and after looking at the basic shape of things, it piqued our interest enough to say, “Let’s take the next step,’” a delegation member said. “We said, ‘Let’s test the market, take its temperature, and see where it takes us.’”