Lyttelton Port Company in hiatus over marina decision

Friday 9th February 2001

TIED UP: The port company will have to go back to court

By Chris Hutching

Lyttelton Port Company managing director David Viles says an Environment Court case upholding the rights of yachts to moor in the inner harbour is unlikely to affect the port's trading operations or share price.

For several years the port company has been trying to relocate yachties from about 50 inner harbour moorings where it plans to develop commercial facilities.

In the Environment Court it argued its exclusive right to use the area and said pleasure boats could be relocated to a new marina at nearby Magazine Bay. Evidence was still being given in the case last October on the same day that an unseasonably ferocious storm virtually destroyed the partially built new marina.

But the recently released court ruling says Lyttelton Port Company should negotiate with all stakeholders and return to the court when it has a firm plan for its redevelopments. Meanwhile, the pleasure boat owners retain their occupation rights.

Mr Viles said the decision might delay some initiatives but the company was now likely to seek development land outside the immediate port area in places like the nearby Ferrymead industrial area. The company was not keen to spend more money helping to rebuild the Magazine Bay marina, having already spent about $500,000 and considerable time on the marina project, he said.

Meanwhile, the receiver of the storm-damaged Lyttelton Marina Ltd has identified debts of about $7.2 million and expects little change will be left over for unsecured creditors who are owed about half the amount.

Stephen Tubbs of Spicer & Oppenheim was appointed after the storm last October which destroyed a large part of the partially completed floating breakwater and marina structure as well as sinking several boats that smashed against the wreckage.

A possible source of satisfaction for creditors may be the enforcement of a sale contract signed just two days before the destruction of the marina with a company associated with Christchurch property developer Adrian Sissons.

He is unconcerned about the receiver's action, which he said was against a $1000 company specially set up for the purchase, Lyttelton Marina 2000 Ltd. This company had no assets.

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