The Eastern Cape Development Corporation (ECDC) has announced it is to move into the second phase of developing Queenstown's Lukhanji Aerodrome into an industrial business hub.

ECDC Queenstown regional heard Tokozile Boboyi who has had sight of the completed pre-feasibility, says when the hub is finished, it should open up opportunities for investors and industrial businesses who want closer access to markets in additional to East London and Port Elizabeth.

The aim of the pre-feasibility, conducted by PD Naidoo and Associates consulting engineers, was to review the current status of the airport, its infrastructure and the potential of an industrial business hub, comparing, in particular, those results against identified critical factors for success.

The report sets out these factors as the potential growth of transportation demand in the area, the status of existing airport infrastructure, the cost of upgrading the airport in the short to long term, opportunities for the hub such as leveraging off current office demand as well as the impact of the much-needed hub on growth on business in the area.

The project investments, in the short and long term, range from R12 million to R61,2 million.

Boboyi says the study shows that there is a strong business case since the Lukhanji Airport has enough infrastructure for businesses. The current infrastructure available includes office; accommodation, factory and retail space, conferencing facilities, warehouse facilities and truck staging, Information Communication Technology infrastructure and canteen facilities.

She explains that Queenstown is endowed with a good road and rail network as well as a regional airport. However, it is critical that the logistical efficiencies like road, rail, air and telecommunications, connecting Queenstown to East London and Port Elizabeth be optimized, so that the role of the local airport is could be expanded.

The second phase, which is due to start shortly, will see the development of one of the business plan options, as was identified in the initial phase of the study. Following this phase, funding for the project will be sourced.

Boboyi says representatives from ECDC, the Border Kei Chamber of Business, the Lukhanji Municipality, the Queenstown Flying Club and Small to Medium Enterprises provided valuable inputs in the study.

"The pre-feasibility study suggests that a business hub, with linkages to the Queenstown airport, can make a significant contribution to the economic growth of the region.

She says if correctly structured, the business hub could become one of the most effective tools in the implementation of the local economic development strategy and support various sector development strategies, in particular those of manufacturing and tourism.

Lukhanji's central location is the largest urban centre in the district, which makes it the economic powerhouse of the region.

The Queenstown Airport is licensed and compliant with Civil Aviation Authority (CAA operating codes and procedures. The land is currently owned and maintained by the Lukhanji Municipal Authorities. However, all operations are controlled through the Queenstown Flying Club.

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For more information, contact

Tokozile Boboyi

ECDC Queenstown

Telephone: 045 8381910

Cellular: 0834511747

Email: tboboyi@ecdc.co.za

For ECDC media relations

Lunga Mtshizana

SMG Africa

Telephone: 043 726 8833

Cellular: 083 618 7557

Email: lunga@smgafica.com