Future of the Elliott Basin

As you are all aware the CTBi management of the Elliot Basin has been under discussion for some time and during a TRANSNET NPA (TNPA) board meeting in Cape Town on May 10th 2011 it was decided that the lease is to be cancelled. The present high cost of the lease coupled with the bi-annual increase has
placed the CTBi under enormous financial pressure, jeopardizing the future of the sector development association. The CTBi has been subsidizing the running costs of the facility which is in reality being utilized by very few of our members. The market conditions have changed considerably from 2008 when we started our application for the lease and unfortunately CTBi’s members are not in a position to support it. The present downturn in the boatbuilding sector has meant that our members are unable to provide the critical mass needed to ensure the viability of the Elliot Basin marina and CTBi is not in a
financial position to carry the facility anymore.

In accordance with the agreement reached, TRANSNET NPA has advised CTBI that the lease for the Elliot Basin is to terminate on the 30th of July 2011 and the facility is to be cleared of all structures, including the pylons. Accordingly we have been instructed to notify our tenants that their current tenancy of the
Elliot Basin is to terminate on the 30th of June 2011. We are required to undertake extension cleaning and maintenance at the facility to ensure it is in perfect order when we hand it to TNPA at the end of July. The removal of the pylons is likely to be a lengthy and very expensive exercise, which will require that all of our tenants are out of the facility by June 30th.

Companies that wish to remain in the Elliot Basin under the management of TNPA will have to contact the TNPA property department directly for their permission and provide CTBi with written confirmation of approval from TNPA to that effect before June 10th. There are a number of marinas and facilities around the Cape Town region and we have advised our tenants to contact the facilities promptly to ensure their space.

The docks, chains and other structures within the Elliot Basin which need to be removed will all be for sale, so please contact the Elliot Basin office for further details. Under heavy pressure from our members the CTBi Board boldly stepped forward to secure the lease and manage the facility on behalf of our members until the sector could take over. We were able to negotiate for a longer lease for the facility for private individuals or firms wishing to manage the area but unfortunately market conditions are presently so that no one has an appetite for the project. We are saddened by this turn of events but need to remain true to our mandate and our main objectives within the organization.

I invite all stakeholders to contact me if they wish to discuss the matter and trust we can count on your
support in this final, challenging phase of the CTBi Elliot Basin.