U.S. Customs and Border Protection approved Ports of Indiana-Burns Harbor’s proposal to establish the first international sea cargo container terminal on Lake Michigan.
The project would create an all-water container route for ocean vessels to serve the Chicago area via the Great Lakes. Currently containers moving through the Chicago market travel by rail or truck.
The Burns Harbor port in Northwest Indiana is within sight of the Chicago skyline. The port generates $16.6 billion in economic impact annually. Chicago leads the intermodal container market in North America.
“Having an all-water container route into the Midwest could create transformational opportunities, but it will take time to develop,” said Jody Peacock, Ports of Indiana CEO, in a press release.
U.S. Customs and Border Protection determined the proposed project justified the need for a CBP container cargo examination facility at Burns Harbor. Ports of Indiana will start constructing infrastructure and installing facilities and equipment in 2025.
Ports of Indiana-Burns Harbor has the capability to handle containers today. It will start scheduling regular container shipments when the customs’ facilities are fully operational, likely in 2026.
Ryan McCoy, port director at Ports of Indiana-Burns Harbor, said the new venture comes with major challenges and major opportunities.
“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,” McCoy said. “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.”
Among U.S. Great Lakes ports, Cleveland and Duluth also handle container vessels. Adding Burns Harbor to the list of Great Lakes container ports provides shippers with a network of container terminals.
“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 container business.
Ports of Indiana operates three ports on the Ohio River and Lake Michigan. It serves as a statewide resource for maritime issues, international trade and multimodal logistics. Ports of Indiana was established in 1961.
