KUALA LUMPUR (April 23): Tanco Holdings Bhd (KL:TANCO) has revised the commercial structure of its proposed smart AI container port in Port Dickson, replacing an earlier long-term lease arrangement with a port development concession (PDC) model, which formalises the project under a concession framework while preserving the planned payment structure and tenure of up to 98 years.
In a Bursa Malaysia filing on Thursday, the property developer said its 79%-owned subsidiary Midports Holdings Sdn Bhd (MHSB) and 80%-owned unit MBINS Ventures Sdn Bhd (MVSB) have entered into a supplemental heads of agreement with Menteri Besar Negeri Sembilan (Pemerbadanan) (MBINS) to amend the terms of the original agreement signed in November last year.
The project involves the development of a smart container port on about 180 acres of submerged land in Dickson Bay, Negeri Sembilan. The wider Midport development is planned on a 480-acre land bank owned by Tanco, with natural deepwater access exceeding 21 metres that can accommodate some of the world’s largest container vessels.
The proposed port is being pitched as an AI-driven and automated logistics hub featuring smart cargo handling systems, green port technologies and supporting logistics and industrial activities.
Under the initial structure, MVSB was to lease the land to MHSB for 98 years at a base rental of RM5 million a month, with payments beginning three years after the agreement date or upon completion of the port and commencement of operations, whichever was later.
That arrangement has now been replaced with a PDC, under which MVSB will grant MHSB concession rights over the land for an initial 33 years, with two extension options of 33 years and 32 years respectively.
The base PDC fee remains RM5 million a month, payable in advance and subject to a 5% upward revision every five years. Payment will commence three years from the date of the supplemental agreement or upon completion of the project and the start of port operations, whichever is later.
As with the earlier arrangement, RM1 million from each monthly payment will be channelled directly to MBINS as its agreed entitlement under the joint venture structure.
Tanco said the amendments are not expected to have any immediate material effect on earnings for the financial year ending June 30, 2026.
The company had in December named CCCC Dredging Southeast Asia Sdn Bhd, a unit of China Communications Construction Company, as the proposed engineering, procurement, construction and commissioning contractor for the seaport component, under a package carrying a maximum indicative value of RM3.53 billion. Construction was expected to take three and a half years once work begins.
Later that month, Tanco said Hong Kong-based Ocean Bridge International Ports Management Co Ltd had been appointed to operate the proposed terminal and deploy AI and automation technologies across cargo handling, storage, logistics transportation and related port services.
However, ownership and ultimate disposal rights of the terminal assets will remain with MHSB, which will also bear all profits and losses arising from the port’s operations.
Shares of Tanco slipped two sen or 1.22% to close at RM1.62 on Thursday, valuing the group at about RM9.94 billion. The counter has gained over 37% year to date.
Sourced: The Edge Malaysia (24 April 2026)