Malaysia to build port near Kuala Lumpur amid supply chain shift.
Developer Tanco teams up with a Chinese company on AI-driven facility
Developer Tanco teams up with a Chinese company on AI-driven facility
KUALA LUMPUR — Malaysia will build a new container port along the western coast of the Malay Peninsula facing the Malacca Strait, one of the world’s busiest sea lanes, as the country prepares to capture logistics demand created by global supply chain shifts.
The estimated 2 billion ringgit ($425 million) port will utilize artificial intelligence to improve operational efficiency, becoming the first port in Malaysia to do so. Local property developer Tanco Holdings, through its subsidiary Midports Holdings, will lead the development in collaboration with China-based marine engineering company CCCC Dredging Co., a group company of state-owned China Communications Construction Co.

According to an announcement, the port will be developed in the city of Port Dickson, in the state of Negeri Sembilan. Close to Kuala Lumpur and the midpoint of the Malacca Strait, it could benefit from high traffic and connectivity to key industrial regions in Malaysia.
“The construction of this port will contribute to Malaysia’s goal of establishing a modern and efficient port hub, accelerating economic development in Negeri Sembilan, and bolstering Malaysia’s global trade position,” Tanco Group Managing Director Andrew Tan Juan Suan said in a statement.
“This collaboration with CCCC Dredging marks a pivotal step towards realizing our 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.”
The proposed port will feature a 1.8-kilometer jetty, terminal and container operation area of approximately 809,300 sq. meters. It will be able to accommodate the largest container ships, according to Negeri Sembilan Chief Minister Aminuddin Harun, as cited in a report by Malaysian national news agency Bernama.
The companies have yet to announce an expected completion date.
As global companies diversify their supply chains, Malaysia has emerged as a beneficiary, attracting investments from electronics and other manufacturers. Klang Port, the country’s largest, plans to double its capacity to capture demand, operator Westports Holdings recently told Nikkei Asia.
Aminuddin said the new port could greatly boost the nation’s logistics and marine transport services industry, as a network of roads and highways will connect it to major industrial areas.
According to the announcement, AI technology will enhance the port’s operational efficiency, reduce human error and lower the accident rate. The AI system will analyze traffic data, schedule ship movements, track marine operations around the port and manage automated logistics.
These advancements are anticipated to streamline processes, reduce operational costs and minimize environmental impact. The port will also feature automated cranes, self-driving trucks and top-tier cybersecurity measures with the capacity to receive large container ships, according to the announcement.
By Hakime Amrie, Nikkei staff writer. 7 June 2024.
Source: Nikkei Asia. https://asia.nikkei.com/Spotlight/Supply-Chain/Malaysia-to-build-port-near-Kuala-Lumpur-amid-supply-chain-shift#:~:text=KUALA%20LUMPUR%20%2D%2D%20Malaysia%20will,by%20global%20supply%20chain%20shifts. 18 June 2024.
Race to top 10 pays off for Port Klang KUALA LUMPUR (Oct 25): When the government made the bold decision to position Port Klang as the country’s premier maritime gateway in the 1990s, it raised a lot of eyebrows. After all, competing with regional rivals like Singapore and Hong Kong was no small task, and both were already way ahead [...]
How geopolitics is redrawing the world’s shipping routes Globalisation isn’t dead, but it’s changing course, writes Neil Shearing, group chief economist at Capital Economics, and author of this year’s bestseller The Fractured Age. Commentators have been quick to declare globalisation dead. But, as is so often the case in economics, the reality is more complicated than the headlines suggest. This [...]
Asia-U.S. container rates rally GRIs, less capacity boosts trans-Pacific prices The uncertainty that has marked global ocean shipping so far this year struck again this past week –but that may signal a turn for the better for ocean carriers. Container rates on the eastbound trans-Pacific posted increases, halting steady declines that have challenged lows from 2023. Rates from Asia to [...]
Scroll To Top