Riverports are making waves in Kentucky. The state possesses one of the most robust inland waterway systems in the United States, containing nearly 1,100 navigable waterway miles.
The riverports here have distinct geographic advantages, navigating economic pathways for imports and exports all the way from Catlettsburg in the east to Hickman in the west. The economic impact across Kentucky is significant. In 2018, Kentucky traded over 89 million tons of freight using inland waterways, valued at over $18 billion. About 79% of Kentucky’s waterborne trade (by tonnage) is exchanged with trading partners outside of the commonwealth. Yet, despite riverports’ financial return, state leaders more often discuss and prioritize roads and highways as well as air travel and air freight.
“Inland riverports are some of the largest drivers of economic opportunity but are often overlooked in our commonwealth,” says Jennifer Kirchner, executive director of Kentuckians for Better Transportation. “As a state, we have done little to support and grow our public riverports. Riverports provide cost-effective and efficient transportation of goods, unlocking a myriad of benefits for businesses, including the ability to reach international markets.”
Riverports are now getting the attention they deserve. This year’s legislative session saw multiple efforts to increase the state’s support of 10 public riverport authorities.
In recent history, the Kentucky General Assembly has allocated just $500,000 a year in funding for public riverport authorities, a figure that pales in comparison to neighboring states.
In 2022, the Kentucky Transportation Cabinet (KYTC) completed a study and found that the state’s riverports are “chronically underfunded.” The following year, the House and Senate created a task force to assess the existing multimodal infrastructure system, including river, rail, road and airways.
The task force found state riverports have a backlog of $12.3 million in “unmet needs required to maintain current business.” The group also determined the Kentucky Riverport Improvement Grant Program lags other states with respect to planning and funding. With all the analysis and attention, many industry leaders hope the tide is turning in Frankfort and decision-makers will jump on board to chart a new course.
Over 80 of Kentucky’s 120 counties are considered riverport “hinterlands,” an area for which cargo can be potentially drawn to and from competitively within a 90-minute radius from a port. The fact that two-thirds of Kentucky’s counties have an economic interest in ports bolsters industry supporters. Per Kirchner, “Riverports encourage the development of complementary infrastructure such as roads, railways and freight facilities. This not only enhances connectivity within regions but also strengthens Kentucky’s integration into global supply chains, positioning our state as a hub of commerce and innovation.”
The items coming in and out of Kentucky riverports are vast and varied: coal, petroleum, plastics, agricultural products, aluminum, scrap metal, distilled and blended liquor and more. With Kentucky selling bourbon products in 80 or more countries, port shipping is critical and arguably more efficient; one 15-barge tow is the equivalent to 1,050 semis and tractor-trailers.
Owensboro Riverport Authority deals heavily in the transport of motor vehicles and parts, a role that may become even more prominent as Kentucky car manufacturing-related exports increase.
In another exciting turn of events, Century Aluminum has announced plans to potentially build the nation’s first new primary aluminum smelter in 45 years in northeast Kentucky.
The green aluminum plant could be the largest investment on record in the area and may bring 5,500 construction jobs and 1,000 permanent jobs. Presumably, the new smelter would require extensive transport operations, which would impact river commerce.
Two Kentucky ports have recently received federal grants from the Department of Transportation. The Hickman-Fulton County Riverport, Kentucky’s only riverport on the Mississippi River, received funding to update its 1970s conveyor system, an upgrade critical to operations and future development. The Paducah-McCracken County Riverport Authority, which services 14 Western Kentucky counties, received a DOT grant that will help increase and expand cargo transshipments services within its bulk commodity storage yard.
Both federal grants were made possible by the G.R.A.N.T. Program established by House Bill 9 in the 2023 legislative session. In response to massive federal grant funding, the General Assembly created a state program to help counties, cities and nonprofits with the “local match” often required for federal grants.
According to the Transportation Cabinet, Kentucky has the fourth-largest number of navigable inland waterways in the country, a vital natural resource the state should utilize to the fullest. With the General Assembly taking greater interest, the opportunity for riverport growth is on the horizon.
Bob Babbage and Rebecca Hartsough are with Babbage Cofounder, a leading government relations firm.
