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Ports of Indiana has secured a record $25 million federal BUILD grant from the U.S. Department of Transportation to finance a $32 million expansion of its Jeffersonville port, a project that will significantly increase heavy lift and breakbulk handling capacity on the Ohio River and strengthen multimodal freight connections across the Midwest.
The award marks the largest federal grant received in the Ports of Indiana organization’s 65 year history and more than doubles the previous highest federal funding secured by any Indiana port. The investment will also represent the largest single infrastructure project at the Jeffersonville facility since it opened in 1985.
The expansion is designed to transform an underused section of the port into a dedicated multimodal cargo terminal capable of handling larger industrial shipments, steel products and project cargo. Construction is scheduled for completion in 2028.
Heavy lift capability to expand dramatically
According to Ports of Indiana, the project will introduce a new 300 ton crane system, a 6,500 square foot dock and a 22,000 square foot warehouse. Once operational, the improvements will raise the port’s lifting capacity from 35 tons to 300 tons, an increase of more than 800%.
The project will also more than double barge to rail transloading capacity while establishing the port’s first general cargo handling area located outside the floodplain. That change is expected to improve operational reliability during periods of high water while providing additional storage and cargo handling space.
Jody Peacock, Chief Executive Officer of Ports of Indiana, described the project as a major step in expanding the port’s role within Southern Indiana’s industrial supply chain.
He said the investment would enable the port to accommodate larger steel shipments and project cargo, improve storage capacity and operational efficiency, reduce transportation costs for regional industries and reinforce Jeffersonville’s position as a key multimodal freight hub.
Federal funding targets regional freight network
The grant was awarded through the Better Utilizing Investments to Leverage Development program, commonly known as BUILD, which is administered by the U.S. Department of Transportation to support surface transportation projects with regional or national economic significance.
This funding round allocated $1.73 billion across 127 projects selected from approximately 1,200 applications, highlighting the competitive nature of the program.
Indiana Governor Mike Braun said the investment would strengthen freight movements by river, rail and road while creating additional opportunities for manufacturers, agricultural exporters and businesses across Southern Indiana.
Support for the project also came from Indiana’s congressional delegation. Congresswoman Erin Houchin said the improvements would strengthen supply chains and improve freight efficiency for businesses throughout Indiana and the wider Midwest. Senator Todd Young said the grant would help position the Jeffersonville port to meet growing demand, while Senator Jim Banks said the modernization would support manufacturing and logistics activity across the state.
Strategic role for breakbulk and project cargo
The expanded terminal is expected to increase Jeffersonville’s attractiveness for heavy industrial cargoes that require high lifting capacity and efficient multimodal transfers between barge, rail and truck. Industries including steel, energy, manufacturing and infrastructure projects stand to benefit from improved handling capability and additional storage space.
The investment also reflects continued federal support for inland waterway infrastructure as supply chains seek greater resilience through diversified freight corridors beyond congested coastal gateways.
