Ports of Indiana eyes Chicago import, export container market

The U.S. Customs and Border Protection (CBP) agency has approved the Ports of Indiana proposal to establish the first international sea cargo container terminal on Lake Michigan at its Ports of Indiana-Burns Harbor location.

“This would create the only all-water container route for ocean vessels to serve the greater Chicago metropolitan area via the Great Lakes," says the port authority, which operates three ports on the Ohio River and Lake Michigan.

The Burns Harbor terminal is located in northwest Indiana, inside the U.S. Census Bureau’s Greater Chicago Metropolitan Area and within sight of the Chicago skyline.

The new container port will be part of the 25th largest U.S. port, measured by volume, according to Ports of Indiana. The Burns Harbor port currently handles 25 million tons of cargo annually and generates $16.6 billion in annual economic impact.

The Chicago metropolitan area is the third largest in the U.S. with a population of 9.6 million people and is home to the largest intermodal container market in North America. Currently, however, all containers moving through the Chicago market travel by rail or truck, according to the agency.

Chicago has long been a significant generator of recycled materials, with recyclable metals, old corrugated containers (OCC) and plastics generated by its manufacturing, distribution, municipal recycling and construction and demolition sectors. Each year, the United States is among the largest exporters of recycled materials globally.

“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,” Ports of Indiana CEO Jody Peacock says.

“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 [agency’s] facilities are fully operational, potentially in 2026.”

CBP approval was provided in a letter stating it has determined Ports of Indiana’s project justifies the need for a staffed CBP container cargo examination facility at the Burns Harbor location. Ports of Indiana, however, will be responsible for providing infrastructure construction to include a CBP office, equipment, furnishings, supplies, large scale non-inspection equipment, radiation portal monitors and security per CBP’s specifications.

The necessary construction and installation of buildings and equipment is expected to take place next year.

“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,” says 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.”

The Ports of Indiana Commission last month approved a resolution establishing “The Indiana Container Initiative,” formalizing the organization’s commitment to pursue the development of container shipping facilities at its ports and other locations in Indiana.

Among U.S. Great Lakes ports, Cleveland and Duluth currently handle container vessels, while Monroe, Michigan, also is pursuing CBP approval, according to Ports of Indiana.

“Adding Burns Harbor to the list of Great Lakes container ports would allow shippers to utilize a network of container terminals which now includes the largest metropolitan area on the Great Lakes,” the agency says.

Ports of Indiana already has garnered 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.

“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,” says Ian Hirt, a maritime consultant working with the port to develop its 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.”

As facility planning commences, Ports of Indiana says its staff members are seeking potential partners and customers to advance the project and will be engaging in partnerships to formalize the initial development plans, quantify volumes and develop a scalable terminal that is appropriately sized to meet current and future demands.