The Chicago metropolitan area will soon get its first all-water container ship route, as Ports of Indiana-Burns Harbor moves forward with its plans to build a new international sea cargo terminal in Northwest Indiana. But what does this mean for shipping in a region known more for its status as one of the nation's leading rail hubs? 

Around 25% of all rail freight traffic in the U.S. passes through the Chicago metro area, as the main interchange between western and eastern railroads in North America. Moving freight over water has traditionally been a different story, says Freight Right Global Logistics CEO Robert Khachatryan, due to the challenges presented by the St. Lawrence Seaway, the series of locks and canals that connects the Great Lakes to the Atlantic Ocean. The St. Lawrence Seaway's issues are two-fold — first, its narrow passages can only accommodate ships of up to 740 feet in length, a far cry from the 1,000-foot-plus behemoths that have become commonplace in the freight industry. Second, winter ice can often stall shipping activities in the region for months at a time. 

Although a single new terminal along Lake Michigan won't solve all those problems by itself, Khachatryan says it's still a huge step in the right direction. 

"This new terminal at Burns Harbor represents a significant shift in the logistics landscape of the Chicago metro area, enhancing the region's connectivity and capacity for international trade," he says. 

Khachatryan notes that the new terminal will feature "significant infrastructure upgrades" specifically designed to allow larger ships to dock at the port. That will include navigational technologies to help ships move safety through the narrow channels, real-time weather monitoring to help plan for seasonal challenges, and ice-breaking services to extend the port's operational periods well into the winter months. The terminal will also have a container cargo facility staffed by U.S. Customs and Border Protection, which will streamline the port's processes and cut down on delays caused by regulatory hurdles. And with the ability to move more freight by water, the region will reap the benefits up and down its supply chain. 

"Developing new, efficient routes through the Great Lakes will alleviate congestion in traditional rail and truck corridors," Khachatryan says. "This diversification of transport options will reduce bottlenecks and enhance the reliability of supply chains."

Ports of Indiana-Burns Harbor expects the new terminal to come online sometime in 2026. The port authority also announced a $25 million project in June of 2024 to add three new ship berths and two railyards, which it says will increase its capacity for handling railcars by 1,200%.