Tanco Holdings Berhad has entered into a preliminary agreement to secure the supply of up to four million tonnes of armour rocks for the reclamation works of its proposed Smart AI Container Port development in Port Dickson, marking another step forward for the flagship infrastructure project.
The group said its indirect wholly owned subsidiary, Tanco Supplies Sdn. Bhd., signed a Memorandum of Agreement with Halaman Mantap Sdn. Bhd on July 14 to facilitate the supply of armour rocks required for the reclamation phase of the project.
The proposed Smart AI Container Port is being developed by Midports Holdings Sdn. Bhd. (MHSB), a 79%-owned subsidiary of Tanco.
Under the agreement, HMSB has agreed in principle to supply up to four million tonnes of armour rocks through TSSB to support the reclamation works for the Midport project.
The parties have up to four months from the date of the MOA, or a longer period if required based on engineering assessments, to negotiate and finalise key commercial terms, including specifications, quantities, pricing, delivery schedules and payment arrangements before executing definitive supply contracts.
Payment for the armour rock supply is expected to be spread over a period of up to four years from the execution of the final contracts.
The proposed arrangement remains subject to TSSB first securing the relevant supply contracts from Midports or its appointed main contractor for the reclamation works.
As part of the agreement, HMSB has committed to allocating and maintaining sufficient quarry reserves to meet the project’s anticipated demand once the contracts are finalised.
Tanco said the agreement is intended to facilitate the sourcing of armour rocks required for the reclamation works, a critical component of the proposed Smart AI Container Port development.
