Ports of Indiana awarded largest ever federal grant to construct rail transload operation and rail yard at Mount Vernon port

The U.S. Maritime Administration (MARAD) announced today that Ports of Indiana-Mount Vernon has been awarded a federal grant totaling $11,249,000 to construct a $16 million rail yard and transload facility.

The Mount Vernon grant was one of 31 Port Infrastructure Development Program awards by the U.S. Department of Transportation – Maritime Administration in 15 states and one U.S. territory, totaling nearly $580 million.

“This is the largest federal grant in Ports of Indiana history and it will have far-reaching impacts throughout the Southwest Indiana economy,” said Ports of Indiana CEO Jody Peacock. “We are extremely grateful to MARAD and our Indiana officials for supporting this effort. Once completed, this project could double our port’s rail capacity and create a major transload hub that connects throughout the U.S. on four Class I railroads.”

The rail yard and transload facility will be located on 30 acres along State Road 62 within the Mount Vernon port. It will include 13,000 feet of track dedicated to railcar switching and 7,000 feet of track that will facilitate cargo transfers between truck and rail.

The Mount Vernon port is located near the midpoint of the U.S. population, has 600 acres available for development, and recently contracted with OmniTRAX to be the rail switching provider. The port annually handles 7 million tons of cargo and 40,000 railcars, while its operations support 8,200 jobs and generate $1.6 billion in economic impact per year.

“This is a major milestone for our organization and a transformative step for the Mount Vernon community,” said Jason May, port director for Ports of Indiana-Mount Vernon. “This investment will create new rail opportunities for local businesses and lead to long-term economic growth and a positive impact across our region.”

Overall, the project will include the installation of approximately 20,000 feet of rail track, five new rail-truck transload zones, and a multipurpose cargo storage yard. The grant also supports the purchase and installation of a new truck scale and scale house, truck marshaling areas, facility lighting, and security improvements for the transload operations. More than five acres of new paved roadways will link the transload facilities.