Midports Holdings executive director Datuk Chuah Lim Leng (seated, left) and CCCC Dredging vice president Huang Daojin ink the MOU between the two firms on June 6, 2024.

KUALA LUMPUR (June 6): Midports Holdings Sdn Bhd, a 79%-owned subsidiary of property developer Tanco Holdings Bhd (KL:TANCO), has entered into a memorandum of understanding (MOU) with China's CCCC Dredging (Group) Co Ltd to develop Malaysia's first smart artificial intelligence (AI) container port in Port Dickson, Negeri Sembilan.

In a bourse filing on Thursday, Tanco said the MOU aims to facilitate communication and information exchange to advance the proposed project to the implementation stage.

The group added that both parties will enter into a separate agreement at the implementation stage to clarify their respective rights and responsibilities. Each party will bear its own costs incurred during the MOU's performance, with third-party service costs being negotiated separately.

China’s CCCC Dredging (Group) Co Ltd, established in May 2015 in Shanghai and currently listed in Hong Kong and Shanghai, is one of the largest dredging companies in the world. It has set up a wholly-owned subsidiary, CCCC Dredging Southeast Asia Sdn Bhd, in Malaysia.

In a separate statement on Thursday, Tanco said Midports has obtained approval in principle from the Ministry of Transport Malaysia to develop the port in Port Dickson, named Smart AI Container Port. This project aims to boost the local economy and enhance international trade, supporting Malaysia's goal of becoming a modern port hub.

The MOU follows the joint venture agreement between Midports and Menteri Besar Negeri Sembilan (Perbadanan) announced on February 27 for the reclamation works necessary for the project.

Datuk Seri Andrew Tan Juan Suan, group managing director of Tanco Holdings, said the collaboration with CCCC Dredging is a pivotal step towards realising its vision of a world-class port in Port Dickson.

"The expertise and resources brought by CCCC Dredging will ensure the successful implementation of this project, which is set to drive economic growth and create job opportunities in the region,” Tan said.

Meanwhile, Liu Yongman, chairman of CCCC Dredging (Group) Co Ltd, expressed pleasure in partnering with Tanco Holdings on this project, emphasising that their combined expertise and resources will create a state-of-the-art port to enhance Malaysia’s maritime infrastructure and set new standards in operational efficiency and environmental sustainability.

"We are committed to bringing our best capabilities to this strategic initiative and look forward to a successful collaboration," Liu added.

Shares in Tanco settled four sen or 4.28% higher at 98 sen on Thursday, valuing the company at RM2.03 billion.