Milwaukee is strategically positioning itself as a key player in the regional freight industry with the development of the South Cargo Logistics Hub at Milwaukee Mitchell International Airport. Construction crews are nearing completion on this extensive cargo terminal, which aims to enhance shipment speed in the region and attract carriers to reduce their reliance on Chicago’s O’Hare International Airport.
Rising on the site of the former 440th Airlift Wing, this new facility is marketed as a viable alternative for international and wide-body freighters, potentially alleviating congestion and delays associated with O’Hare. Proponents argue that the hub could cut emissions per flight and create hundreds of jobs in logistics and supply chain management across southeastern Wisconsin.
Project Overview and Economic Impact
According to a press release from CBRE, the Dallas-based development firm Crow Holdings has expanded the South Cargo Logistics Hub to approximately 337,000 square feet. The project features a dedicated cargo building and a new county highway maintenance garage. The developers emphasize that the on-tarmac location, with ample apron space, allows multiple wide-body freighters to park simultaneously with direct runway access for future tenants. The total project cost is around $75 million, primarily funded through private investment under a long-term ground lease with Milwaukee County.
Supporters of the project cite reliability as a significant advantage. They argue that reduced handoffs and shorter taxi times will lead to quicker turnaround times for time-sensitive freight. Consultant Jim Best expressed the sentiment that Milwaukee has historically been overshadowed by Chicago, stating, “we’ve always been a stepchild to Chicago.” He believes this initiative can change that dynamic.
Milwaukee’s proponents also point to the persistent congestion at O’Hare and the associated lengthy taxi delays as factors that could persuade shippers to consider routing more cargo through MKE instead. Additionally, they highlight the potential environmental benefits stemming from reduced ground time and shorter truck movements within the supply chain.
Future Prospects and Timeline
A news release from Milwaukee County indicates that the hub is expected to generate over $1.3 million annually in aircraft landing fees and more than $1 million per year in ground lease and related rents. County officials assert that this public-private partnership requires no taxpayer funding and is poised to create hundreds of new jobs in freight brokerage, customs compliance, and logistics operations throughout the region. These developments, they argue, could bolster Milwaukee’s appeal as a port of entry for manufacturers, bringing supply chains closer to local production facilities.
Developers have reported that the facility is on track for an opening in September 2024, with ongoing work focused on roof installation and enclosing the structure. The project also includes repairs to nearby taxiways and apron areas to accommodate wide-body freighters effectively. As CBRE prepares to market the property to prospective tenants, the industry is closely monitoring tenant commitments, the addition of carrier flights, and any federal or state grants aimed at supporting apron improvements.
If the hub operates as planned, it may significantly alter how freight is routed across the Midwest, potentially increasing the number of freight-handling jobs within a short distance of Milwaukee factories. For the time being, officials and industry observers are keenly awaiting tenant announcements and trial operations to determine if shippers will indeed divert traffic from O’Hare.
