Increased collaboration with tenants creates options for the best use of existing space.
In much the same way stock portfolios can become more successful when diversified, so is the plan at Port Milwaukee, where a focus on diversification of services is expected to play an integral role in the future success of the Port. Built in the 1950s and 1960s, Port Milwaukee oversees operations on 400 acres and often finds itself having to address infrastructure issues that need priority attention. The same heightened attention is currently being given to the future plans for Port Milwaukee, where a valuable commodity for the Port and its tenants is collaboration.
Challenges Begin with Awareness
The challenges faced by Port Milwaukee are the same as those faced by many other ports—aging infrastructure, transportation bottlenecks, security, etc.—which makes it even more essential for Port Milwaukee to become more competitive with larger ports that may be more well known because of their size and shipping accommodations. According to Jackie Q. Carter, port director, one of the biggest concerns at Port Milwaukee is what little awareness there is about the Port.
Another important concern at Port Milwaukee—as well as at almost every other port in the country—is safety, especially since the bridge collapse at the Port of Baltimore in March. Following the bridge collapse, Port Milwaukee received many inquiries about what safety measures they have in place that could prevent a similar event from occurring.
In a statement from the Port, they replied, “Port Milwaukee has received several media requests regarding our safety measures and infrastructure integrity. Large oceanic container ships, such as the vessel involved in the Baltimore incident, do not call on Milwaukee. Port Milwaukee receives vessels similar in length, but roughly half in width, compared to the involved vessel.”
The Port added, “All foreign vessels are required to engage a United States or Canadian registered pilot to direct vessel navigation through critical areas of the Great Lakes. Tug assistance for vessels provides an additional level of safety for the captain, pilot, and owner of any vessel transiting the Port. Tug assistance coupled with a vessel’s bow and stern thrusters and a skilled pilot significantly mitigates any risk to critical structures within the harbor. Port Milwaukee is continually partnering with multi-agency first responders to enhance current response plans and develop new joint operations plans whenever gaps are identified.”
Further assuring any concerns that safety is a top priority at the Port, Carter said, “Port Milwaukee is committed to ensuring the safety and security of its facilities, employees, and the community. The port community is resilient and has strong connections with our maritime partners and local first responders.”
Increased Cargo and Collaboration
Although a smaller port, Port Milwaukee moves an impressive amount of diverse cargo through its facilities. The largest breakbulk commodity is steel, while the largest bulk commodity is road salt, and salt for water softening use. Other commodities moving through the Port include cement, limestone, bottom ash, slag, and liquid bulk. Once products arrive at Port Milwaukee, they are transported throughout the country via truck (65%) and railroad (35%), along with barges when necessary. Tonnage statistics show notable growth from 2022 to 2023, with increased imports expected to continue; however, while increased tonnage would bring more revenue for the Port, shippers would incur additional service fees with increased tonnage.
Carter acknowledged this financial challenge faced by Port Milwaukee, and how a plan focused on collaborative marketing efforts and operational diversity may be the key to the Port becoming more cost-effective and competitive in the near future.
“Along with current tariffs, the pilotage fees raise the cost of doing business at Port Milwaukee and make it harder for us to be competitive for potential tenants. Part of our efforts to compete with other ports is in the way we get to know our tenants and help market their businesses in the industry. By learning more about our tenants’ businesses and needs, we can create options that help meet those needs, which will make us a more competitive option when they are looking to choose which port to partner with for their shipping needs,” Carter reported.
Seasonal Issues and Leveraging Space
While the Port continues to be proactive in solidifying its relationships with tenants to make Port Milwaukee a more appealing port of call, there are seasonal issues that offer the opportunity for operational diversity to help regain revenue lost to the weather.
Carter said, “At Port Milwaukee, we are trying to diversify the way we operate. We are heavily salt-driven, so when we have a mild winter, that commodity doesn’t move as much, leaving us with empty parcels. Part of our planned diversification is trying to figure out the best way to use available parcels for commodities other than salt.”
The tenants at Port Milwaukee encompass three industries: commercial, tourism, and recreation. Carter asserted there are a lot of areas where the Port operates that offer opportunities to create new tenancy, including at the Port’s cruise dock. One option being considered is the construction of a deep-draft dock, which would be welcoming and help to attract additional cruise lines. Port statistics show that “during the 2023 season, 30 cruise ship visits brought nearly 12,000 foreign and domestic passengers” to the city of Milwaukee. Port information notes, “Viking Cruises leverages Port Milwaukee as a turnaround port for the company’s Great Lakes itineraries.”
Another option for new recreational business tenants is within an area that already has established businesses that include a restaurant, festival grounds, and a science museum. Carter said the focus on how to grow the Port’s capacity through diversification efforts could also serve to help the Port move away from a landlord-tenant relationship to one that is more reflective of business partners.
Streamlining Success with Technology
As Port Milwaukee looks to become a more cost-effective port of choice for businesses and owners of cargo, it also looks to embrace technology such as artificial intelligence (AI) that can help streamline and/or automate reporting processes for enhanced efficiency and accuracy. Carter elaborated on the benefits AI offers.
“With so much going on with vessels coming and going, paperwork can sometimes become an afterthought. AI as a tool to automate our processes and track cargo in a more streamlined way and would make us more efficient overall. AI could also be used with operator’s vessels to communicate information that we all need. The use of AI could become a way to gather and disseminate that information,” Carter suggested.
Other issues that are front of mind at Port Milwaukee focus on advance preparation. In relation to issues of piracy and cybersecurity, technology could play a future role in helping the Port “prepare to help, as long as any solution does not inhibit the Port’s ability to operate.”
Carter also mentioned another area of preparation that is a front-of-mind concern at the Port. “We are looking at how to prepare to start transitioning to alternate fuels. How do we prepare? What kinds of precautions do we need to take? These are questions we have been thinking about.”
When it comes to the numerous benefits technology may offer Port Milwaukee, they may all be secondary to the benefits of simply listening and learning, according to Carter.
“Technology may be great for process automation and efficiency, but a lot of benefits can be found in our communication with other ports. I believe we should be continually learning and sharing with each other to see what works and what doesn’t. If we are always listening and learning from other ports, we can see what challenges other ports are facing, and we can work together to find solutions that work for everyone facing the same challenges,” Carter summed up.
