The Owensboro Riverport Authority has been awarded $1.12 million in grant funding to support a second phase of its rail infrastructure expansion. The project is expected to improve safety, boost efficiency, and open the door to new industrial growth in western Kentucky.
Gov. Andy Beshear recently announced the grant as part of nearly $3 million awarded for nine projects statewide through the Kentucky Industrial Access and Safety Improvement (KIASI) program. The KIASI and Kentucky Railroad Crossing Improvement (KRCI) grants are designed to expand and rehabilitate rail lines, improve safety at crossings, and support long-term economic growth.
“This KIASI Grant program is helping ports and industries statewide expand rail capacity for current and future growth,” said Brian Wright, President and CEO of the Owensboro Riverport Authority. “The Owensboro Riverport Authority is honored to receive this grant and looks forward to continuing to support industrial growth and job creation in western Kentucky.”
Wright said construction is expected to begin in summer 2026. The scope of work includes paving 26,500 square feet of asphalt for a new access road and pouring 41,700 square feet of concrete for a truck loading and storage area.
This grant follows a previous award received in fiscal year 2024-25 to build two rail spurs connected to the north and south ends of the Riverport’s interior rail loop. While those improvements were originally planned to support a specific tenant, changes in global tariffs caused that company to delay its plans. Wright said the Riverport decided to move forward with the rail development regardless.
“This second phase creates access to the inner loop and builds out laydown space for future businesses,” Wright said. “It improves immediate safety and efficiency, especially with the volume of aluminum, sodium bicarbonate, and automotive chassis we move. It also gives us flexibility to grow the chassis business and promote direct rail access to other regional industries.”
He added that the construction phase would support local contractors, with about $3.5 million in total investment between the two phases. While it’s too early to project specific new permanent jobs, Wright said the upgrades provide a strong foundation for future business recruitment.
The Owensboro Riverport Authority provides multimodal transportation services and supports commerce across the region and the Commonwealth. Wright said the improvements are part of the Riverport’s broader strategic growth plan and are designed to better serve current customers while attracting new investment.
