An effort is underway to try to bring shipbuilding to the Port of Indiana-Burns Harbor.
U.S. Sen. Todd Young's office has been in regular talks with leaders of a bid to lure a shipbuilder to the deepwater port on Lake Michigan, a spokesman said.
“There is a private effort underway to make that happen," press secretary Leah Selk said. "The SHIPS Act would provide incentives to develop new shipyards around the country, and Senator Young has advocated to the administration and industry about the potential the Midwest brings to help restore America’s maritime dominance. Senator Young is excited about the opportunities for Hoosiers if this bill becomes law.”
Trade unions are hailing the initiative to develop a shipyard as a potential major addition to Northwest Indiana's industrial base on the Lake Michigan lakefront that could result in significant jobs and steady work for contractors, as well as bolster the port and the steel industry.
“Indiana is uniquely positioned to lead the next wave of maritime innovation in America. With 400 miles of navigable waterways, world-class steel production and a multimodal logistics network that reaches 75% of the U.S. and Canadian populations within a day’s drive, our state offers unmatched potential to develop supply chains for advanced manufacturing and shipbuilding components," Ports of Indiana CEO Jody Peacock said. “Policy initiatives like the SHIPS Act and maritime development programs could unlock transformative opportunities for Indiana’s economy along Lake Michigan, the Ohio River and across the state.”
Young, a Republican, and U.S. Sen. Mark Kelly, D-Arizona, reintroduced the Shipbuilding and Harbor Infrastructure for Prosperity and Security, or SHIPS, for America Act earlier this year in the hope of reviving American shipbuilding. They are seeking to address how China has 5,500 flagged vessels taking part in international commerce, while the United States only has 80.
“America has been a maritime nation since our founding, and seapower was a significant contributor to our rise to being the most powerful nation on earth," Young said. "Unfortunately, the bottom line now is America needs more ships. Shipbuilding is a national security priority and a stopgap against foreign threats and coercion. Our bill will revitalize the U.S. maritime industry, grow our shipbuilding capacity, rebuild America’s shipyard industrial base and support nationwide workforce development in this industry. This legislation is critical to our warfighting capabilities and keeping pace with China."
The legislation would aim to increase the U.S.-flag international fleet by 250 ships in 10 years, establish hubs of maritime innovation around the country, line up more maritime funding and create financial incentives for domestic shipbuilding, including a 25% investment tax credit.
The financial incentives have sparked interest in potential investment in a shipbuilding operation at the Port of Indiana-Burns Harbor, said Randy Palmateer, business manager of the Northwestern Indiana Building and Construction Trades Council. The port is already a major employer of workers represented by the operating engineers and longshoremen unions, Palmeteer said.
Several trade unions from across Northwest Indiana, especially the boilermakers, would benefit from the work a shipyard would create, he said.
"It would be huge for the trades," Palmateer said. "There's the temporary construction jobs for any facilities that would have to be built. That would employ hundreds of workers. Then there would be ancillary projects and ancillary developments. There would be hundreds of permanent jobs. There would be work coming out of there for the trades like in the steel mills."
The Port of Indiana-Burns Harbor meets the criteria needed for a shipbuilder, such as having a deep-sea port that's 27 feet deep, he said.
"It would mean more work for the steel mills and help them out," Palmateer said. "It would be like the steel mills in that they would always have capital projects going on. Our hope is it would mean steady work and mean more industrial jobs for contractors along the lakefront."
Further diversifying Northwest Indiana's industrial base along the lakefront would have benefits by insulating contractors from cyclical ups and downs in different sectors, he said. If work was slow at the refineries or steel mills, a shipbuilder could help pick up the slack.
Region steel mills already supply shipbuilding. The Port of Indiana-Burns Harbor, for instance, makes the steel plate that's used in U.S. Navy vessels.
"We're pushing for this to happen. It's huge. It could be just as huge as the South Shore double-track or the hydrogen hub would have been," Palmateer said. "It would be great for steel, as they would be using our steel anyway and it's right there. It makes perfect sense logistically. And it would be huge for our council and the business trade. It could mean a lot more business."
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