Malaysia plans to build first smart AI container port

In an effort to capture logistics demand due to changes in global supply chains, Malaysia is planning to build a new container port along the west coast of the Malay Peninsula facing the Strait of Malacca, which was one of the busiest sea route in the world.

With an estimated value of $425 million, the new port will use artificial intelligence (AI) to enhance operational efficiency and become the first port in Malaysia to apply this technology.

Early this month, Tanco Holdings Bhd (THB), through its subsidiary Midports Holdings Sdn Bhd (MHSB), signed a memorandum of understanding (MoU) with CCCC Dredging (Group) Co Ltd (CCCC Dredging), a subgroup of China Communications Construction Company Limited (CCCC), to develop Malaysia’s first smart artificial intelligence (AI) container port in Port Dickson, Malaysia’s Negeri Sembilan state.

According to the MoU, the port will be developed in an area of about 809,300 sq.m 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.

There will be a wharf, a terminal and a 1.8 km long container operating area. AI technology is expected to improve port operational efficiency, minimise human errors and reduce accident rates. The AI system will analyse traffic data, schedule ship movements, monitor maritime activities around the port and manage logistics automatically.

Tanco Group managing director Andrew Tan Juan Suan said in a statement that 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.

According to him, the collaboration between Tanco Group and CCCC Dredging marks a pivotal step towards realising Malaysia's 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.

Negeri Sembilan state Chief Minister Aminuddin Harun said the new port can significantly boost Malaysia's logistics and shipping industry thanks to a network of roads and highways connecting the port with major industrial zones.

As global companies diversify their supply chains, Malaysia has emerged as a beneficiary, attracting investment from electronics producers and other manufacturers. Malaysia's largest port - Port Klang - is also planning to double its capacity to meet demand.