Ports of Indiana-Burns Harbor has officially been given the go-ahead to create the first all-water container route for ships serving the Chicago metropolitan area through the Great Lakes. 

The container route will come as part of a project to build Lake Michigan's first international sea cargo terminal in Northwest Indiana just south of Chicago, which U.S. Customs and Border Protection approved on July 2. Although Ports of Indiana-Burns Harbor is the 25th largest port in the U.S., all containers that travel through the Chicago area are moved 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,” Ports of Indiana CEO Jody Peacock said in a news release. “Having an all-water container route into the Midwest could create transformational opportunities, but it will take time to develop." 

Chicago is currently one of the nation's highest trafficked freight rail hubs, with roughly 25% of all freight trains in the U.S. passing through the city's metropolitan area, according to data from the Association of American Railroads. Container traffic has been a different story, though, given the difficulty of fitting larger vessels through Great Lakes waterways. The hope with the new terminal is to bring a "modern port system" to Indiana, while providing more options for container vessels for Great Lakes ports.

“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," Ports of Indiana-Burns Harbor director Ryan 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.”

The port expects the terminal to be fully operational sometime in 2026.