Milwaukee’s Cruise Ship Dock More Than Doubled In Cost, Is It Worth It?

The Viking Octantis departs while the Viking Polaris (right) waits to dock. Photo by Sophie Bolich.

Milwaukee finds itself in a cruise ship arms race, but the cost is too much to bear for some in City Hall.

After the cost of a proposed cruise ship dock more than doubled, the issue came to a head Wednesday with port director Jackie Q. Carter stressing that the $17 million project was worth it and one alderman threatening to reallocate the proposed funding.

But it started out like a dream.

Viking Cruises‘ 2022 entry into Great Lakes cruising included making the city a turnaround port, where one trip ends and another begins. Turnarounds involve double the amount of passengers, as well as generating hotel stays and airport traffic, and yielding revenue from selling supplies to the vessels. It’s the exact kind of thing cities covet.

And it got better.

A mix of grants and land sale proceeds were to pay for the $7.3 million cruise ship dock, aimed at delivering a first-class experience and warding off any competing ports. More than 10,000 new tourists a year, and no city cash outlay.

Then things started spiraling.

First, the city failed to secure a U.S. Department of Commerce grant.

Then, the city allocated $80,000 to create a “Shangri La” design that would include more features to accommodate large vessels like the Octantis, including running sewer and water lines out to the dock.

“What keeps me up at night is if we don’t build South Shore correctly, Duluth is building a fantastic dock that will include all of these features,” said then-port director Adam Tindall Schlicht in August 2022. “Chicago coming online at Navy Pier keeps me up. Duluth and their investment in their downtown dock keeps me up.” More recently, port officials have warned that Muskegon, Michigan is also seeking the turnaround business.

Later in 2022, the city substituted the missed grant $2 million with city borrowing and officials said they had enough to move forward and open the dock by 2024, ending use of an industrial dock.

But the city quickly found out it didn’t have enough to build its original “bare minimum” design.

By 2023, costs had increased to more than $10 million said city budget officials.

By May 2024, the port arrived at its current figure of $17 million based on a revised design and expanded scope.

State grants would cover $4 million, with the department using $7.6 million it has retained in carryover funding and the Komatsu South Harbor Campus land sale as well $5.25 million in new borrowing.

City funds now account for more than the entire cost of the original proposal. But the proposal is also bigger in several ways.

Running sewer, water and electric service to the site is no longer just to serve Viking and other large ships. “We want to do development at that site,” said port director Jackie Q. Carter on Wednesday. A 2021 request for information drew no serious inquiries, said Carter, because of concerns with utilities and site preparation. She said the long-term vision for the site, located at the east end of Lincoln Avenue, is a mix of tourism and public access uses.

The dock itself is also bigger and far more complicated.

Viking operates two 666-foot-long, Seawaymax-sized vessels capable of carrying 378 passengers. The city’s initial plans called for a 110-foot-long platform, but after discussions with Viking and a review of the services provided at the Heavy Lift Dock, the port settled on a 363-foot-long platform that was also deeper than initially planned. Permanent utilities, as well as a paved road and dredging, would be added.

Opposition Emerges

“At $17 million, I have to say, I have problems with this project,” said Alderman Robert Bauman in Wednesday’s Public Works Committee meeting.

He said would introduce a budget amendment to reallocate the $5 million in new borrowing to street paving projects and a down-payment assistance program for new homeowners.

“Choose your dock or choose down-payment assistance,” said Bauman.

“If we don’t do this now, when will we do it?” asked Carter.

If the council approves the $5 million in funding, the dock, said Carter, could open in 2026. If it doesn’t approve the funding, the city could lose the state grant.

She said that while the port generated $305,000 in direct revenue in 2022, the benefits to the city are much larger. “Over the last three years, we are estimating very conservatively that we have seen about $7 million in economic impact,” said the port director. She said the direct revenue impact is even bigger now with the city’s new sales tax.

“I know these economic impact studies and in my humble opinion that they’re not worth the paper they’re printed on,” said Bauman.

“We exist to support businesses,” said Carter. She noted that the port also returns an operating profit to the city’s general fund.

“I get the argument. I don’t buy the numbers,” said Bauman.

Alderman Jonathan Brostoff joined Carter and Mayor Cavalier Johnson in backing the proejct. “We have to build the infrastructure to attract the commerce,” said the alderman.

“This project will aid to the growth of our entire city,” said Alderwoman Larresa Taylor.

Questions Beyond Economics

There are many open questions, including if Viking or another cruise line will agree to a long-term agreement and if the city can build a commercial development on the dock site, made of filled lakebed.

Carter believes the impact of the new dock and new competitors will allow the city to secure a long-term agreement with Viking or another cruise operator. But at the moment, it is proposed that the dock be built without a long-term tenant.

“There are a number of companies building ships that will also enter the Great Lakes,” she said. Viking hasn’t accepted a long-term deal with the city to date, which Carter said is partially because of the dock. “Right now, they don’t have to have that because there is nobody else that can do it, but there are more companies coming.”

Port officials have said that the South Shore site is the only practical option because of the size of the vessels. Viking upended the market by introducing Seawaymax passenger vessels, the largest ship size that can enter and exit the Great Lakes. And now other companies, said Carter, are following suit.

The city previously invested in a much smaller cruise ship dock at Pier Wisconsin, the Discovery World building. But Seawaymax vessels can’t fit there without tens of millions in dredging. The site accommodates vessels with up to a 16-foot draft, but Viking ships have a 27-foot draft.

The city has used its industrial Heavy Lift Dock in the inner harbor so far.

“They keep coming back, so it’s adaquete in the eys of the cruise ship operator,” said Bauman.

“Right now, we are one of the only Great Lakes ports that can accommodate this level of activity,” said Carter. “Right now, we don’t have a lot of competition. That’s going to change.”

She said in addition to improving the infrastructure, the city needs to improve its curb appeal.

“The aesthetics is what we’re missing,” said Carter to the Board of Harbor Commissioners on Oct. 10. She noted the sewage treatment plant is next door to the Heavy Lift Dock.

But Bauman doesn’t like the site on the edge of Bay View. “This is an awful unattractive site,” he said. “You’re out in the middle of nowhere.”

The cruise ship dock would be built atop a 50-acre landfill created in 1975 as part of a dredging effort. It would be located east of the Lake Express ferry terminal.

The alderman noted you can’t walk to anything from that site, nor is there nearby transit service.

“They’re not getting off and walking,” said Carter. “They’re getting off and getting on tours that have been prearranged.”

There is also the question of the state’s Public Trust Doctrine, which prevents commercial development on filled lake bed.

Carter said, citing the Harbor House restaurant, that the port could navigate the challenges. But Bauman said that is no certainty and cited the state law change that was necessary to enable The Couture.

“Has there been any conversations with our City Attorney on that?” asked Brostoff.

Not explicitly, said Carter. However, she noted that the City Attorney’s office sends an attorney to each Harbor Commission meeting.

“They are aware of the wish,” said Bauman.

Carter said the port is aware of the challenges and is working on avoiding any issues. She said the port has looked at Muskegon’s chalets, which allow a rotating group of businesses to sell to tourists.

But Bauman isn’t sold.

“To put this in context. This $17 million is a local share for a streetcar extension,” said the alderman. “And we’re puttig it in a dock for Viking because the other ships can use other docks.”

“What a lively exchange,” said Brostoff after more than a half hour of debate.

“Whatever the council does decide, the port is doing exactly what we want them to do,” said Alderwoman Milele A. Coggs of the effort to create a revenue stream. “These are good debates to be having.”

“If we don’t take a risk like most entrepreneurs, we won’t see the return,” said area Alderwoman Marina Dimitrijevic during the Oct. 16 budget hearing. “This was like a dream a couple years ago, now it’s getting to be reality.”

The full council will adopt the budget on Nov. 8.

Cruising Stats

The 2025 cruise season is already estimated to be a slower one, with 21 ship visits and 9,500 passengers. That’s down from 27 calls and 13,568 passengers in 2024.

That’s because one of Viking’s two vessels will leave the market.

“Next year, about halfway through the season, they’re going to pull that ship and do some itineraries outside of the Great Lakes, but they’re going to come back in 2026,” said Carter during her department’s budget presentation on Oct. 16. She said the port is already booking 2026 business. “We are not concerned about that decrease for next year. We will see that rebound.”

Port Milwaukee has a 20-year commitment from the smaller Pearl Seas to lease the Pier Wisconsin dock

In addition to Viking and Pearl Seas, vessels from American Queen Voyages (the former Victory Cruise Lines), Ponant Explorers and Vantage have visited Milwaukee in recent years.

Viking Octantis Tour Photos From Inaugural 2022 Visit

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Port Milwaukee South Shore Cruise Dock site. Aerial map from City of Milwaukee LMS.

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