Prime Minister Datuk Seri Anwar Ibrahim officiating the ground-breaking ceremony at Midport as Tanco Holdings Bhd group MD Datuk Seri Andrew Tan (second from left) and Minister of Transport Anthony Loke Siew Fook (third from left) looked on. (Photo by Suhaimi Yusuf/The Edge)

PORT DICKSON (July 14): Property developer Tanco Holdings Bhd (KL:TANCO) has broken ground on Midport, which is Malaysia’s first smart artificial intelligence (AI) container port located in Pasir Panjang, Port Dickson in Negeri Sembilan.

The ceremony was officiated by Prime Minister Datuk Seri Anwar Ibrahim accompanied by Transport Minister Anthony Loke Siew Fook and Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun.

Construction is expected to take about 42 months, with commercial operations targeted between 2029 and 2030.

“Midport represents the exact model of high-impact, technology-driven infrastructure required to secure Malaysia’s position as a primary digital and maritime hub within Asean. As a private-sector-driven initiative with coordinated federal and state backing, this project demonstrates how strategic private capital can accelerate our Madani national economic agenda, driving advanced AI integration and job creation without straining public resources,” said Anwar during his speech at the groundbreaking ceremony.

The project will be undertaken by Midports Holdings Sdn Bhd, a 79%-owned subsidiary of Tanco, on a 180-acre site within the gazetted Kuala Sungai Linggi Port Limits.

The planned facility will feature a 1.5km trestle and six berths, with a handling capacity of up to eight million twenty-foot equivalent units (TEUs) upon full completion.

According to a statement, Midport has been endorsed by the National Physical Planning Council (MPFN) as the principal maritime gateway under Parcel E of Malaysia Vision Valley 2.0 (MVV 2.0), giving it National Strategic Priority Project status.

Tanco said the proposed port is intended to help address projected capacity constraints along the Strait of Malacca, where container demand is expected to exceed available capacity by about 27 million TEUs by 2030 and widen to around 144 million TEUs by 2050.

The infrastructure investment is estimated at approximately US$850 million (RM3.47 billion) for phase 1, and will be funded by the private sector, says Tanco.

The company said the project has secured approval-in-principle from the Ministry of Transport as well as unconditional approval from the Marine Department.

It added that engineering, procurement and construction contractor CCCC Dredging Southeast Asia Sdn Bhd has begun early site works under a framework agreement with a maximum indicative value of RM3.53 billion. Meanwhile, Hong Kong-based Ocean Bridge International Ports Management Co Ltd has been appointed as the terminal operator.

The group said the proposed port will be integrated with the adjacent 600-acre Port Dickson Free Zone, which is being developed by Menteri Besar Negeri Sembilan (Incorporated) MBINS and Tanco’s indirect subsidiary Tanco Land Sdn Bhd for warehousing, manufacturing and logistics activities.

The company estimates the combined developments will create about 5,000 direct and indirect jobs while supporting the development of Port Dickson as a port and industrial hub.

On the same day, Tanco signed two new Memoranda of Understanding (MOUs) — one involved securing four million tonnes of armour rock for marine and reclamation works, while the other was signed with China’s state-owned SPG Qingdao Port Group Co, which will explore participating in the port project and helping to raise funds.

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.

Tanco’s share price rose for the second consecutive day, ending Tuesday 31.25% higher at 31.5 sen per share, giving the company a market value of RM1.932 billion. The stock is down 72.84% year to date.