Tanco Holdings Bhd has revised the 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. The new structure formalises the project under a concession framework while maintaining the original payment terms 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 signed a supplemental heads of agreement with Menteri Besar Negeri Sembilan (Pemerbadanan) (MBINS), amending terms from the original agreement signed in November last year.
The project involves developing a smart container port on about 180 acres of submerged land in Dickson Bay, Negeri Sembilan. The broader Midport development spans a 480-acre land bank owned by Tanco, with natural deepwater access of more than 21 metres, capable of accommodating some of the world’s largest container vessels.
The proposed port is positioned as an AI-driven and automated logistics hub, featuring smart cargo handling systems, green port technologies, and supporting logistics and industrial activities.
Under the original structure, MVSB was to lease the land to MHSB for 98 years at a base rental of RM5 million per month, with payments starting three years after the agreement date or upon completion and commencement of port operations, whichever is later.
This has now been replaced with a PDC structure, under which MVSB grants MHSB concession rights over the land for an initial 33 years, with two renewal options of 33 years and 32 years.
The base concession fee remains RM5 million per month, payable in advance and subject to a 5% increase every five years. Payments will begin three years from the date of the supplemental agreement or upon completion and commencement of port operations, whichever comes later.
As before, RM1 million from each monthly payment will be channelled directly to MBINS as its entitlement under the joint venture structure.
Tanco said the revisions are not expected to have any material impact on earnings for the financial year ending June 30, 2026.
In December, the company 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, with a package valued at up to RM3.53 billion. Construction is expected to take about three and a half years once it begins.
Later that month, Hong Kong-based Ocean Bridge International Ports Management Co Ltd was appointed to operate the terminal and deploy AI and automation technologies across cargo handling, storage, logistics transport and related services.
However, ownership and ultimate disposal rights of the terminal assets will remain with MHSB, which will also bear all profits and losses from port operations.
Tanco shares slipped two sen, or 1.22%, to RM1.62 on Thursday, valuing the group at about RM9.94 billion. The stock has gained more than 37% year to date.
