Tanco secures strategic partnerships with China’s Qingdao Port Group to accelerate Smart AI Container Port development in Port Dickson
PETALING JAYA: Tanco Holdings Bhd. has taken another major step towards realising its Smart AI Container Port development in Port Dickson after entering into strategic agreements with a leading Chinese state-owned port operator and a local infrastructure supplier to strengthen project execution, operational expertise and financing capabilities.
In separate filings with Bursa Malaysia, the company announced the signing of a memorandum of understanding (MoU) with SPG Qingdao Port Group Co., Ltd. (SQPG) and a memorandum of agreement (MoA) involving the supply of millions of tonnes of armour rock required for the project’s reclamation works.
The latest developments reinforce Tanco’s strategy of bringing together internationally recognised port operators and experienced industry partners to support the implementation of one of Malaysia’s most ambitious next-generation maritime infrastructure projects.
The MoU with SQPG was signed through Tanco’s 79 per cent-owned subsidiary, Midports Holdings Sdn. Bhd. (MHSB), and establishes a framework for both parties to explore strategic cooperation in the planning, construction and long-term development of the Smart AI Container Port.
The collaboration will also examine opportunities for SQPG to participate in fundraising initiatives and financing activities to support the project’s implementation.
According to Tanco, the arrangement is non-exclusive and serves as a platform for both organisations to evaluate various forms of cooperation before entering into legally binding definitive agreements.
Any future participation by SQPG will be formalised through separate commercial agreements once negotiations have been successfully concluded.
SQPG operates under Shandong Port Group, one of China’s largest state-owned port enterprises and the operator of the Port of Qingdao, which consistently ranks among the busiest container ports globally.
The group possesses extensive capabilities in container terminal operations, logistics management, multimodal transportation, cargo handling, liquid bulk operations, warehousing and integrated supply chain services across international markets.
Tanco believes the potential collaboration will enable the Smart AI Container Port project to leverage SQPG’s technical expertise, operational experience and global best practices in modern port management.
The company said attracting an internationally established strategic partner would further enhance the project’s credibility while strengthening efforts to secure long-term investment and financial support.
The MoU will remain valid for six months from the date of execution unless both parties agree to extend the arrangement, replace it with definitive agreements or terminate it earlier in accordance with the agreed terms.
Tanco also emphasised that any transfer of rights, obligations or participation under the agreement to third parties will require written approval from both organisations.
The company said the agreement is not expected to have any immediate financial impact on its issued share capital, earnings per share, net assets per share, gearing ratio or the shareholdings of its major shareholders.
Separately, Tanco announced that its wholly owned indirect subsidiary, Tanco Supplies Sdn. Bhd. (TSSB), has signed a memorandum of agreement with Halaman Mantap Sdn. Bhd. (HMSB) for the proposed supply of up to four million tonnes of armour rock required for reclamation works under the Smart AI Container Port development.
Under the proposed arrangement, HMSB has agreed in principle to supply the construction materials necessary for the large-scale marine engineering works, subject to the successful completion of commercial negotiations.
Both parties are expected to finalise discussions on technical specifications, supply quantities, pricing, delivery schedules, payment mechanisms and other contractual provisions within four months, although the period may be extended should additional engineering studies or technical requirements arise.
Following the completion of negotiations, both companies intend to execute a definitive supply agreement, subject to compliance with Tanco’s internal approval procedures and the relevant recurring related party transaction (RRPT) requirements.
The proposed payment period for the armour rock supply contract is expected to extend over four years from the execution of the final agreement.
Tanco explained that TSSB must first secure the corresponding procurement contract from Midports Holdings or the project’s appointed engineering contractor before the supply agreement can take effect.
At the same time, HMSB has committed to ensuring sufficient armour rock reserves are available to support the reclamation programme once construction progresses.
Should the parties fail to reach agreement on the definitive supply contract, or if TSSB does not obtain the required procurement package for the project, either party may terminate the memorandum without incurring further contractual obligations.
The company added that the memorandum will automatically lapse if no definitive agreement is concluded within the stipulated negotiation period or once the formal supply contract has been successfully executed.
The latest strategic agreements demonstrate Tanco’s continued efforts to build a strong ecosystem of international and domestic partners capable of supporting the successful delivery of the Smart AI Container Port, while positioning the project as a technologically advanced logistics hub capable of strengthening Malaysia’s maritime infrastructure and regional trade connectivity.
