The Chibatao container terminal in Manaus, Brazil, plans to spend 113 million-reais ($41.9 million) to boost its annual container capacity by two-thirds to 500,000 TEUs.

The expansion project is part of the deal Chibatao Navegacao e Comercio Ltda struck with the Brazilian government to gain Terminal of Private Use (Terminal de Uso Privado, or TUP) status. Chibatao is the 30th facility to be granted TUP status since a Brazilian port law aimed at encouraging private infrastructure investment was passed in June 2013.

Critics of the law point out that only a fraction of the $2.24 billion in expected port investment through 130 potential port concessions has been realized. The Brazilian government counters 9.5 billion-reais in private port investment has been invested or will soon be spent.

Through the project, Chibatao Navegaco plans to nearly triple its operational base from 98,000-square-meters to nearly 359,000-square meters. The terminal will lengthen its quay by 260 meters to 710 meters, with an extra 60 meters to the north and 200 meters to the south.

The granting of the TUP status to Chibatao follows hot on the heels of a similar development for its main rival in Manaus, the Superterminais box terminal, back in early December. Superterminais plans to spend 97 million-reais to increase automation at a container terminal and at a general cargo facility and buy new equipment.

Since 20010, annual container volume at Manau has expanded 31 percent to 420,00 20-foot equivalent units. Chibatao handles 55 percent of the deepsea cargo into the jungle port and all of the cabotage services. Superterinais handles the other 45 percent of deepsea container volume.

There is still some question as to whether or not a plan to build and develop a new $200 million port terminal at a site near the Manaus Industrial Free Zone will go foward. Brazilian companies Wilson, Sons, Santos Brasil and Grupo Libra have shown an interest in the project, as have APM Terminals, DP World, International Container Terminal Services and Hutchison Port Holdings.