US Customs and Border Protection (CBP) has approved Ports of Indiana-Burns Harbor’s proposal to establish the first international sea cargo container terminal on Lake Michigan.
According to a statement, this would create the only all-water container route for ocean vessels to serve the greater Chicago metropolitan area via the Great Lakes.
The Burns Harbor terminal, located in northwest Indiana within the Greater Chicago Metropolitan Area and visible from the Chicago skyline, is part of the 25th largest US port.
This port handles 25 million tons of cargo annually and generates an economic impact of US$16.6 billion per year. The Chicago metropolitan area, with a population of 9.6 million people, is the third-largest in the United States and hosts the largest intermodal container market in North America. Currently, all containers in the Chicago market are transported by rail or truck.
“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. 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,” stated Jody Peacock, CEO at Ports of Indiana.
In addition, CBP’s approval, communicated via a letter, acknowledges the necessity for a staffed CBP container cargo examination facility at the Burns Harbor port. Ports of Indiana will be responsible for constructing infrastructure, including a CBP office, equipment, furnishings, supplies, large-scale non-inspection equipment, radiation portal monitors, and security as per CBP’s specifications. Construction and installation of the facility and equipment are expected to take place in 2025.
“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. 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,” commented Ryan McCoy, port director at Ports of Indiana-Burns Harbor.
Moreover, the Ports of Indiana Commission has recently passed a resolution to establish “The Indiana Container Initiative”, formalizing its commitment to developing container shipping facilities at its ports and other locations in Indiana.
Among US Great Lakes ports, Cleveland and Duluth currently handle container vessels, with Monroe, Mich., also seeking CBP approval. Adding Burns Harbor to the list of Great Lakes container ports would enable shippers to utilize a network of container terminals that now includes the largest metropolitan area on the Lakes.
In support of this initiative, Ports of Indiana has received memorandums of understanding from potential partners, as well as letters of support from other Great Lakes ports and more than 35 government officials, businesses, and trade associations.
As facility planning begins, Ports of Indiana officials are seeking potential partners and customers to advance the project. They will be engaging in select partnerships to formalize initial development plans, quantify volumes, and develop a scalable terminal to meet current and future demands.
