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PETALING JAYA (April 24): Tanco Holdings Bhd has announced a restructuring of the commercial framework for its planned "Smart AI Container Port" in Port Dickson, Negeri Sembilan, replacing an earlier lease arrangement with a Port Development Concession (PDC) model.
In a Bursa Malaysia filing yesterday (April 23), Tanco said its subsidiary Midports Holdings Sdn Bhd (MHSB) and MBINS Ventures Sdn Bhd (MVSB) had entered into a Supplemental Agreement (SHOA) with Menteri Besar Negeri Sembilan (Pemerbadanan) (MBINS) on April 23 to amend the terms of an earlier Heads of Agreement (HOA) signed in November 2025.
Under the revised structure, MVSB — a joint venture between MBINS and MHSB — will grant MHSB a PDC over approximately 180 acres of submerged land in Dickson Bay, Port Dickson, instead of the originally proposed lease arrangement.
Key terms of the PDC include:
1) Tenure: An initial 33-year term from the date the land title is issued and transferred to MVSB, with two extension options of 33 years and 32 years respectively — for a potential total of 98 years
2) PDC fee: RM5 million per month, payable in advance, commencing either three years from the date of the SHOA or upon completion of the port and commencement of operations — whichever is later
3) MBINS entitlement: RM1 million from each monthly PDC payment will be deposited directly to MBINS, constituting its full entitlement per its shareholding in MVSB
4) Escalation: A 5% increase in the base PDC fee after every five-year period
The project has been taking shape rapidly on the contractor and operator fronts. According to The Edge Malaysia, Tanco named CCCC Dredging Southeast Asia Sdn Bhd — a unit of China Communications Construction Company — as the proposed engineering, procurement, construction and commissioning (EPCC) contractor for the seaport component in December, under a package with a maximum indicative value of RM3.53 billion, with construction expected to take three and a half years once work begins.
Later that month, Hong Kong-based Ocean Bridge International Ports Management Co Ltd was appointed to operate the proposed terminal, deploying AI and automation technologies across cargo handling, storage, logistics transportation and related port services, The Edge Malaysia reported.
Ownership and ultimate disposal rights of the terminal assets will remain with MHSB, which will also bear all profits and losses from the port's operations.
Tanco said the restructuring reflects the parties' revised arrangement on the project structure and does not require shareholder or regulatory approval.
The proposed amendments are not expected to have any immediate material financial impact on Tanco for the financial year ending June 30, 2026, though longer-term effects will depend on the project's profit contributions and funding structure.
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