For the first time in a quarter-century, new warehouse construction is underway at the Ports of Indiana-Burns Harbor. Officials recently broke ground on a facility that is set to expand the port’s capabilities and help meet increasing demand for multimodal logistics infrastructure in the region.

The new development marks a major milestone for the Lake Michigan port, launching a $10 million project that includes construction of an 84,000-square-foot warehouse and a 1.65-acre laydown yard. These facilities will be strategically located next to Berth 2, on 4 acres of previously undeveloped land along the port’s east harbor arm.

Ports of Indiana CEO Jody Peacock emphasized the warehouse’s importance in the broader effort to modernize and expand the port’s infrastructure.

“The Berth 2 Warehouse is a key component of $77 million in multimodal expansion at Burns Harbor, and it will provide customers with greater supply chain flexibility and new export opportunities,” said Peacock.

The new warehouse is expected to open in early 2026, further enhancing the port’s logistical capacity. Once completed, the facility will add to the port's existing 640,000 square feet of warehouse space distributed across five buildings. Although a facility operator has not been named yet, the project signals growing interest in strategic investments at Burns Harbor.

The Ports of Indiana-Burns Harbor sits on 600 acres at the southern tip of Lake Michigan, just east of Chicago. Due to its location and infrastructure, the port serves as a vital freight hub within a day’s drive of nearly half the U.S. population. On average, the facility handles 3 million tons of cargo annually, with a nearly even split between bulk commodities and breakbulk cargos, including steel and oversized project shipments.

In addition to the new warehouse, the port is also preparing to make a major leap in cargo handling capabilities. Construction is underway on an international container terminal, a transformational project that will introduce containerized cargo shipments to Burns Harbor for the first time since its founding over five decades ago.

This container terminal, expected to become operational in 2026, is seen as a strategic move to diversify the port’s offerings, making it more competitive in the global shipping market and better positioned to support exporters in the region.

The port’s multimodal expansion is being closely watched by regional economic leaders and stakeholders, as it is poised to strengthen supply chains, support job creation, and drive long-term growth in northwest Indiana.

Originally reported by Maritime Professional.