Ports of Indiana plans to build the first container port on Lake Michigan

Ports of Indiana, the 63-year-old agency that manages the state’s ports, is currently pursuing a plan to develop the first international ocean freight container terminal on Lake Michigan. According to the agency, this would create the only all-water container route for ocean-going vessels serving the Chicago metropolitan area via the Great Lakes.

The initiative is gaining momentum. The Port Commission approved the plan in June, authorizing the agency to proceed with planning and development of the container capacity to be integrated into the Port of Burns Harbor. In response, U.S. Customs and Border Protection (CBP) issued a letter this week approving the plan and agreeing to staff the facility.

“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 transportation,” said Jody Peacock, CEO of Ports of Indiana. “A water-only route for containers to the Midwest could create game-changing opportunities.”

The Burns Harbor terminal is located in northwest Indiana, about 40 miles southeast of the city of Chicago. It is part of the 25th largest U.S. port, handling 25 million tons of cargo annually, including steel, steel production, building materials and agriculture. Port officials stress that they can handle containers, but currently have no dedicated facilities. In addition, with 75 acres of available land, including 35 acres near the harbor wall, the port has room to expand.

CBP concluded that Ports of Indiana’s project justifies the need for a staffed CBP container cargo inspection facility at the Port of Burns Harbor. Ports of Indiana will be responsible for constructing the infrastructure, which includes a CBP office, equipment, facility, supplies, large non-inspection equipment, radiation portal monitors, and security in accordance with CBP specifications.

“Shipping on the Great Lakes is limited by a shorter shipping season and the use of smaller vessels, but the potential for container throughput is enormous,” said Ryan McCoy, port director of Ports of Indiana-Burns Harbor. “Allowing ocean carriers to serve this market could diversify supply chains, avoid bottlenecks and reduce the overall carbon footprint for transportation to and from the Midwest.”

Among U.S. ports on the Great Lakes, Cleveland and Duluth currently handle container ships, while Monroe, Michigan, is also seeking CBP approval. Ports of Indian said adding Burns Harbor to the list of Great Lakes container ports would allow shippers to take advantage of a network of container terminals that now encompasses the largest metropolitan area on the lakes.

The current plan calls for the construction of the facilities in 2025. Sea transport is expected to begin in 2026.