Tanco inks more Smart AI Port MOUs, including with China’s SPG Qingdao for funding

KUALA LUMPUR (July 14): Tanco Holdings Bhd (KL:TANCO) has signed two new memorandums of understanding (MOUs) related to its proposed Smart AI Container Port in Port Dickson. One of the agreements is with China’s state-owned SPG Qingdao Port Group Co, which will explore participating in the port project and helping to raise funds.

The MOU was signed by Tanco’s 79%-owned subsidiary Midports Holdings Sdn Bhd with SPG Qingdao on a non-exclusive basis.

According to the company’s filing with Bursa Malaysia, the MOU is valid for six months and is non-binding, meaning any actual cooperation will require a separate definitive agreement.

The agreement may also be terminated earlier if the parties enter into a formal agreement, or extended through mutual written consent.

SPG Qingdao is part of Shandong Port Group and primarily operates the Port of Qingdao, which Tanco described as one of the world’s 10 busiest ports. It provides port transportation, cargo handling, container and liquid-bulk logistics, warehousing and supply-chain management services.

Tanco said the MOU with SPG Qingdao is not expected to affect its share capital, substantial shareholders’ shareholdings, net assets, gearing or earnings per share.

In a separate announcement with Bursa Malaysia, Tanco said it has also signed an agreement relating to the supply of armour rocks, which are large rocks used to protect reclaimed land from erosion. 

These rocks will support the land reclamation works needed for the proposed Smart AI Container Port in Port Dickson.

The latest announcements came a day after Tanco said its proposed Smart AI Container Port had received approval from the Port Dickson Municipal Council for its building, earthworks, road and drainage, and street lighting plans. This follows the project’s planning permission approval in March 2026. Earlier, in October 2024, the Malaysia Marine Department approved marine activities and construction for the port.

The port will be built on a 480-acre site in Port Dickson with deepwater access of more than 21 metres, allowing it to accommodate large container ships. It is designed to feature AI-powered automation, smart logistics and green technologies.

The project has also been restructured from a long-term lease into a port development concession, giving Midports Holdings Sdn Bhd an initial 33-year concession, with options for future extensions. To facilitate this, Midports and 80%-owned MBINS Ventures Sdn Bhd signed a supplemental heads of agreement with Menteri Besar Negeri Sembilan (Pemerbadanan) (MBINS) to amend the original agreement signed in November 2025.

Tanco first announced the project on Jan 15, 2024, when it disclosed that the Ministry of Transport (MOT) had no objections to the proposed port and the Malaysia Marine Department had granted approval in principle. However, the project still had to complete technical studies and meet the conditions set by the MOT before proceeding.

Since then, the company has secured several strategic partners. In November 2025, it signed a heads of agreement with MBINS to set out each party’s roles in developing the port. In December 2024, Midports signed an MOU with Cosco Shipping Ports Ltd to explore cooperation, although the two parties have yet to sign a definitive agreement.

Midports has also appointed Ocean Bridge International Ports Management Co Ltd as the proposed terminal operator, while CCCC Dredging Southeast Asia Sdn Bhd has been named the proposed engineering, procurement, construction and commissioning (EPCC) contractor for the port’s sea component under a framework agreement with a maximum indicative value of RM3.53 billion.

Tanco’s share price rose for the second consecutive day, gaining 16.67% to 28 sen per share, giving the company a market value of RM1.7 billion. The stock is down 75.86% year-to-date.

Read also:
Tanco wins local council approvals for smart AI port in Port Dickson
Tanco seeks shareholder approval for RM88.5 mil Port Dickson Free Zone land acquisition
Tanco's Midports switches to port concession model for RM5 mil/month Port Dickson smart container port

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!