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Brazilian container terminal operator Terminal de Contêineres de Paranaguá (TCP) will invest 1.1bn reais (US$453mn) to expand its infrastructure at Paraná state's Paranaguá port.
The investment commitment was included in an agreement closed with national waterways regulator Antaq. Under the agreement, TCP will be awarded a 25-year extension to its concession that currently expires in 2023, local daily Valor Econômico reported.
The agreement is now being forwarded to special ports department SEP, the final step in filing the extension.
Investments will be in two phases. The first, from 2016-18, involves 540mn reais to expand container handling facilities. Once completed, the terminal's annual freight handling capacity will increase to 2.5mn from 1.5mn TEUs.
Another 550mn reais is earmarked for phase two for maintenance and equipment replacement throughout the duration of the concession, the report said.
TCP currently handles some 820,000 TEUs a year at what is Brazil's third largest container terminal.