The Ports of Indiana landed U.S. Customs and Border Protection approval to establish an international sea cargo container terminal, the first in Chicagoland and the first on Lake Michigan.
The Port of Indiana-Burns Harbor will be able to unload containers, creating an all-water container route for ocean vessels to reach the Chicago market. Massive international vessels known as salties from the the Atlantic Ocean pass through the St. Lawrence Seaway and drop off cargoes at ports on the Great Lakes.
The federal agency found the project would justify a staffed Customs and Border Protection cargo examination facility at the deepwater port on Lake Michigan in Portage and Burns Harbor. The Ports of Indiana would construct the facility, which would include an office, inspection equipment, radiation portal monitors and security.
“This is a critical step in a long process to establish a container terminal at Ports of Indiana-Burns Harbor and a new supply chain for international container shipments,” said Ports of Indiana CEO Jody Peacock. “Having an all-water container route into the Midwest could create transformational opportunities, but it will take time to develop. Our port has the capabilities to handle containers today, but we won’t be able to schedule regular container shipments until the Customs’ facilities are fully operational, potentially in 2026.”
The Port of Indiana-Burns Harbor is the 25th largest port on the country, handling 25 million tons of cargo a year and generating an estimated annual economic impact of $16.6 billion.
It's located in the Chicago metropolitan area and within sight of the Chicago skyline. The containers currently passing Chicago move by either rail or truck.
Historically, international vessels have delivered commodities and special cargoes to Great Lakes via the St. Lawrence Seaway. The containers that make up the bulk of global trend tend to stop at coastal ports, in part because most of the container ships are so massive they won't fit through the St. Lawrence Seaway locks.
“This new venture comes with major challenges and major opportunities, but our Ports of Indiana team has made this a top priority because we believe it is critical to providing Indiana with a modern port system,” said Ryan McCoy, port director at Ports of Indiana-Burns Harbor. “Great Lakes shipping is limited by a shorter shipping season and the use of smaller vessels, but the potential upside for handling containers is tremendous. Allowing ocean carriers to start serving this market could diversify supply chains, avoid bottlenecks and reduce the overall carbon footprint for shipping to and from the Midwest.”
Ports of Indiana is pursuing an Indiana Container Initiative to bring container traffic to the Chicago area. Cleveland and Duluth are currently the only two Great Lakes ports to handle containers. The Port of Monroe in Michigan also is looking to move containers, a $2.2 trillion global business.
Ports of Indiana is looking to cultivate a customer base, and has secured letters of support from other Great Lakes ports interested in establishing a shipping network, and from more than 35 businesses, government officials and trade associations.
“We’re working with several businesses that have strong interest in using a regular liner service to Burns Harbor, and the initial container projections are promising,” said Ian Hirt, a maritime consultant working with the port to develop the container business. “This will likely be a niche service that offers specialized amenities, such as refrigerated containers or a green alternative, but it could also help avoid bottlenecks and improve supply chain reliability.”
The Port of Indiana-Burns Harbor is looking to build the new customs facility next year.
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