Paducah Riverport Lands Its First Foreign Trade Zone Customer

Exciting activities are happening at the Paducah McCracken County Riverport. For the first time since its designation more than a decade ago, the Riverport has officially welcomed its first shipment through its Foreign Trade Zone (FTZ). With ever-changing global tariffs, the FTZ program is finally being put to work, and it’s already proving to be a powerful tool for business.

PRCO America, which operates a growing manufacturing facility in nearby Hickory, Kentucky, is the Riverport’s first FTZ customer. The company is now importing 1 ton supersacks of fused magnesia from China, a critical ingredient in the high-performance bricks used in steelmaking across the United States.

The product’s journey starts at the Port of New Orleans, where the raw material arrives by bulk steamship. From there, it travels upriver by covered barge to Paducah, where it is unloaded using the Riverport’s 53-ton tower crane and stored in FTZ-designated warehouses until it is needed at the Hickory plant.

 

Photo: Supersacks of fused magnesia stored inside a Foreign Trade Zone (FTZ) warehouse in Paducah.

Why More Companies Are Taking a Closer Look at the FTZ Program

Foreign trade zones are secure, designated locations in the United States where foreign goods can be stored, handled, or even manufactured without being subject to the usual customs duties or tariffs until the goods enter the U.S. market.

For companies like PRCO America, this means better cash flow and more flexibility. Instead of paying tariffs all at once when products arrive in the country, they pay only when the goods leave the zone for consumption. This gives them more control over timing, cost, and inventory.

"The FTZ is expected to help our cash flow," said Bill Porter, president of PRCO America. "With the current import tariffs, we look forward to fully utilizing the FTZ, as the FTZ will allow us to pay the tariffs as we remove the material from the FTZ rather than paying the full tariff at one time upon initial arrival at New Orleans."

Why Paducah and Why Now

According to Paducah McCracken County Riverport Authority Executive Director Jimmie Garrett, this moment has been a long time coming. "There has never been any foreign trade material moved through the Riverport," he said. "The tariffs have not been significant enough to cause a supplier or manufacturer in western Kentucky to utilize that option, though it has existed."

But times are changing, and companies are taking notice. In fact, several businesses are now exploring how the FTZ could reduce their supply chain costs and make their operations more efficient.

For PRCO America, the advantages go beyond the FTZ designation. Barging materials directly to Paducah helps the company reduce transportation costs and ensure a steady supply of critical raw materials for its growing plant. With plans to add a fourth shift and increase production in 2026, PRCO America’s success showcases the economic potential the FTZ can unlock, not just for them but for many others across the region.

The Bottom Line for Business

If you are a manufacturer or distributor moving goods across borders, now is the time to take a look at Paducah’s Foreign Trade Zone.

• Defer or reduce customs duties

• Avoid unnecessary supply chain delays

• Benefit from one of the most centrally located riverports in America

• Improve cash flow

Let Paducah work for you.

To learn more about how your business can benefit from the FTZ, contact:

Jimmie Garrett
Executive Director, Paducah-McCracken County Riverport
Phone: (270) 442-9326

Bruce Wilcox
President and CEO, Greater Paducah Economic Development
Phone: (270) 575-6630