Castlen Terminal, a privately owned river terminal in Owensboro, has officially been designated as a Foreign Trade Zone (FTZ) — a federal certification that could prove to be a major asset for companies navigating rising tariffs and disrupted supply chains.
Owner Matt Castlen said the designation allows businesses to import goods and store them on-site without immediately paying duties or tariffs. If those goods are later used in manufacturing or assembled into a different product, companies may benefit from a reduced or consolidated tariff rate.
“This is something that was created by Congress in 1938 to bring foreign manufacturing back to the U.S.,” Castlen said. “It’s especially useful during times like these when there’s a lot of uncertainty around tariffs.”
Castlen Terminal becomes one of only a few sites in the Owensboro area to obtain FTZ status, joining the Owensboro Riverport and the Owensboro-Daviess County Regional Airport.
The terminal is located at 4565 KY 2830 and was built during the early days of the COVID-19 pandemic. Castlen said his steel company constructed the facility to keep employees working and to diversify operations. The terminal officially opened in 2020.
Today, Castlen Terminal handles custom unloading, product storage, and barge and rail traffic for a range of clients, including ADM, GROWMARK, and Mulzer. The site handles everything from fertilizer and stone to bulk agricultural products.
“We’re a full-blown river terminal,” Castlen said. “The only difference is that we’re privately owned.”
The facility is currently operating under difficult conditions as historic flooding grips the region. Castlen said the Ohio River reached 48 feet this week — yet his team was still carefully unloading barges.
“This is normally our peak season for fertilizer, but a lot of the fields are underwater. And that means barge traffic is limited, and it’s harder to move product,” Castlen said. “It’s a trickle-down effect. The farmers can’t get into their fields, so the terminals are impacted, the fertilizer companies are impacted, and the whole system slows down.”
Castlen said his terminal was built above the 100-year floodplain, allowing it to continue limited operations even amid one of the highest water levels the region has ever seen.
“We designed this place for a day like today,” he said. “We’re extremely fortunate. But our thoughts are with all the people whose homes and farmland are underwater. That’s who we’re praying for.”
As the region begins to recover, Castlen said he’s offering commercial space for businesses affected by the flooding.
“We’ve got 92 acres here. If a company needs temporary space for storage while they rebuild, we’re willing to work with them,” he said. “Trailers, equipment — whatever it is, we want to help how we can.”
The FTZ designation could also be an incentive for companies considering relocating to western Kentucky. Castlen said products imported internationally can now be shipped directly to the site, stored duty-free, and — if altered or assembled — may qualify for reduced duties when they leave.
“You can park your inventory here and wait to see what happens with tariffs,” he said. “That can be a huge help right now.”
The status opens the door for more advanced manufacturing or distribution operations at the site, and Castlen said he’s open to building warehouses or leasing space to companies looking to take advantage of the FTZ benefits.
“If someone wants to set up shop here and import components to assemble on-site, we can help them do that,” he said. “And we’ll help them navigate the process with U.S. Customs.”
For Castlen, who still farms and says agriculture is the backbone of the local economy, this venture is another way to support the region’s growth.
“Agriculture touches 70 percent of all jobs in some way — from food processing to equipment manufacturing to logistics,” he said. “Farmers are the toughest businesspeople I know. We just want to help keep that whole system moving.”
Castlen said a recent sermon left him with a phrase that has stuck with him through the challenges of business ownership and life: “What do you do between the time you feel something and how you respond?”
He said the message has helped guide his decision-making, especially in times of uncertainty.
“That line’s really served me well,” Castlen said. “Whether it’s in business, at home, or just dealing with everyday struggles, it’s a reminder to pause, process, and respond with purpose.”
