UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   Form 10-Q

       [X]          Quarterly report pursuant to Section 13 or 15(d) of the
                    Securities and Exchange Act of 1934

                    For the quarter ended June 30, 1994

       [ ]          Transition report pursuant to Section 13 or 15(d) of the
                    Securities and Exchange Act of 1934

  Commission File   1-7615
      Number

                               Kirby Corporation
                         ------------------------------
            (Exact name of registrant as specified in its charter)

                  Nevada                              74-1884980
       ------------------------------      ---------------------------------
      (State or other jurisdiction of      (IRS Employer Identification No.)
       incorporation or organization)

      1775 St. James Place, Suite 300,
               Houston, TX                              77056-3453
  ----------------------------------------           ---------------------
  (Address of principal executive offices)                 (Zip Code)

                                  (713) 629-9370
                     ----------------------------------------
               (Registrant's telephone number, including area code)
                                         
                                     No Change
                     ----------------------------------------
            (Former name, former address and former fiscal year,
                      if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                         Yes  [X]       No   [ ]

The  number  of shares outstanding of the registrant's Common Stock,  $.10  par
value per share, on August 5, 1994 was 28,313,587.

                        PART 1 - FINANCIAL INFORMATION
                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                           CONDENSED BALANCE SHEETS
                                  (Unaudited)
                                    ASSETS


                                                  June 30,  December 31,
                                                    1994        1993
                                                  --------  ------------
                                                     ($ in thousands)
Marine Transportation, Diesel Repair and Other              
 Current assets:                                            
                                                           
  Cash and invested cash                          $     --       1,999
  Accounts and notes receivable, net of allowance           
   for doubtful accounts                            51,279      50,722
  Inventory - finished goods, at lower of average           
   cost or market                                    8,630       7,531
  Prepaid expenses                                   5,953       7,393
  Deferred taxes                                     1,520       2,768
                                                    ------     -------
     Total current assets                           67,382      70,413
                                                   -------     -------
 Property and equipment, at cost                   418,390     406,675
  Less allowance for depreciation                  138,764     125,459
                                                   -------     -------
                                                   279,626     281,216
                                                   -------     -------
 Excess cost of consolidated subsidiaries            8,753       7,429
 Noncompete agreements, net of accumulated                  
  amortization of $8,345 ($7,298 at December 31,            
  1993)                                              4,705       5,752
 Other assets                                       18,690      13,575
                                                   -------     -------
     Total assets - Marine Transportation, Diesel           
      Repair and Other                             379,156     378,385
                                                   -------     -------

Insurance                                                   
 Investments:                                               
  Available-for-sale securities                    130,414     102,175
  Short-term investments                            16,835      25,128
                                                   -------     -------
                                                   147,249     127,303
 Cash and invested cash                                105      12,937
 Accrued investment income                           2,017       1,998
 Accounts and notes receivable, net of allowance            
  for doubtful accounts                             25,490      12,195
 Reinsurance receivable on paid losses              12,978      15,186
 Prepaid reinsurance premiums                        6,671       5,773
 Deferred policy acquisition costs                   9,870       7,279
 Property and equipment, at cost, net of                    
  allowance for depreciation                         2,384       2,197
                                                   -------     -------
     Total assets - Insurance                      206,764     184,868
                                                   -------     -------
                                                  $585,920     563,253
                                                   =======     =======

           See accompanying notes to condensed financial statements.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                           CONDENSED BALANCE SHEETS
                                  (Unaudited)
                     LIABILITIES AND STOCKHOLDERS' EQUITY


                                               June 30,   December 31,
                                                1994          1993
                                              --------    ------------
                                                  ($ in thousands)
Marine Transportation, Diesel Repair and                  
 Other
   Current liabilities:                                   
                                                        
     Current portion of long-term debt        $ 10,962        10,962
     Accounts payable                           14,571        11,767
     Accrued liabilities                        25,842        27,898
     Deferred revenues                           3,981         5,637
                                               -------       -------
       Total current liabilities                55,356        56,264
                                               -------       -------
   Long-term debt, less current portion        109,216       109,597
   Deferred taxes                               39,822        39,735
   Other long-term liabilities                   8,329         8,913
                                               -------       -------
       Total liabilities - Marine                         
         Transportation, Diesel Repair and                
         Other                                 212,723       214,509
                                               -------       -------
Insurance                                                 
   Losses, claims and settlement expenses       57,171        49,930
   Unearned premiums                            77,078        61,558
   Reinsurance premiums payable                  6,254         5,377
   Deferred Puerto Rico taxes                    1,268         3,549
   Other liabilities                             8,172         4,576
   Minority interest in consolidated            10,172        12,005
    insurance subsidiary                       -------       -------
       Total liabilities - Insurance           160,115       136,995
                                               -------       -------
Contingencies and Commitments                       --            --

Stockholders' Equity:                                     
   Preferred stock, $1.00 par value per                   
    share.  Authorized 20,000,000 shares            --            --
   Common stock, $.10 par value per share.                
    Authorized 60,000,000 shares, issued                  
    30,782,000 shares (30,759,000 at                      
    December 31, 1993)                           3,076         3,076
   Additional paid-in capital                  156,435       156,340
   Unrealized net gains (losses) in value of              
    long-term investments                         (770)        4,440
   Retained earnings                            67,429        61,339
                                               -------       -------
                                               226,170       225,195
   Less cost of 2,468,000 shares in treasury              
    (2,555,000 at December 31, 1993)            13,088        13,446
                                               -------       -------
                                               213,082       211,749
                                               -------       -------
                                              $585,920       563,253
                                               =======       =======

           See accompanying notes to condensed financial statements.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                       CONDENSED STATEMENTS OF EARNINGS
                                  (Unaudited)


                                   Three months ended   Six months ended
                                         June 30,           June 30,
                                   ------------------  ------------------
                                     1994      1993      1994      1993
                                   --------  --------  --------  --------
                                      ($ in thousands, except per share
                                                  amounts)
Revenues:                                                        
                                                     
 Transportation                    $ 74,025  69,451    147,412   122,224
 Diesel repair                       11,646   8,110     21,817    17,734
 Net premiums earned                 15,305  13,559     29,415    22,605
 Commissions earned on reinsurance    1,148     916      2,455     1,622
 Investment income                    2,452   1,945      4,388     3,832
 Gain on disposition of assets           75     198        236       434
 Realized gain on investments            90     168        848       279
                                    -------  ------    -------   -------
                                    104,741  94,347    206,571   168,730
                                    -------  ------    -------   -------
Costs and expenses:                                              
 Costs of sales and operating                                    
  expenses (except as shown below)   55,004  48,324    111,429    87,102
 Losses, claims and settlement                                   
  expenses                           14,784  10,569     25,908    17,085
 Policy acquisition costs             3,644   2,971      7,278     5,388
 Selling, general and                                            
  administrative                     11,807  10,749     23,732    19,605
 Taxes, other than on income          4,232   3,090      7,822     5,951
 Depreciation and amortization        7,887   7,164     15,681    13,325
 Minority interest expense              532    (100)     1,179       115
                                    -------  ------    -------   -------
                                     97,890  82,767    193,029   148,571
                                    -------  ------    -------   -------
                                                          
   Operating income                   6,851  11,580     13,542    20,159
Interest expense                      1,957   2,010      3,766     4,750
                                      -------  ------    -------   -------

   Earnings before taxes on income    4,894   9,570      9,776    15,409
Provision for taxes on income         1,701   3,070      3,686     5,064
                                    -------  ------    -------   -------
                                                                   
   Net earnings                    $  3,193   6,500      6,090    10,345
                                    =======  ======    =======   =======
                                                                 
Earnings per share of common stock $    .11     .26        .21       .43
                                    =======  ======    =======   =======

           See accompanying notes to condensed financial statements.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                       CONDENSED STATEMENTS OF CASH FLOW
                                  (Unaudited)


                                                        Six months ended
                                                            June 30,
                                                       ------------------
                                                         1994      1993
                                                       --------  --------
                                                        ($ in thousands)
                                                              
Net earnings                                           $  6,090   10,345
 Adjustments to reconcile net income to net cash                 
   provided by operating activities:
     Earnings of minority shareholders and                       
       unconsolidated affiliates                          1,135       --
     Gain on disposition of assets                         (236)    (434)
     Realized gain on investments                          (849)    (279)
     Depreciation and amortization                       15,681   13,325
     Increase in deferred tax items                       1,336    2,736
     Increase (decrease) in deferred maintenance                 
       expenses                                          (1,865)     859
     Other noncash adjustments to earnings                   43       25
     Decrease (increase) in cash from other changes              
       in operating working capital of:
         Marine transportation, diesel repair and                
           other                                         (5,314)  (6,767)
         Insurance                                       10,639   (4,899)
                                                         ------  -------
           Net cash provided by operating activities     26,660   14,911
                                                         ------   ------
Cash flow from investing activities:                             
 Proceeds from sale and maturities of investments        22,364   17,346
 Purchase of investments                                (57,668) (20,128)
 Net decrease in short-term investments                   5,705        8
 Capital expenditures                                   (12,528) (10,640)
 Purchase of assets of marine transportation                     
   companies:
     Property, equipment and other assets, net               --  (24,129)
     Intangible assets                                       --   (2,001)
 Proceeds from disposition of assets                        564      937
 Other                                                       --      511
                                                         ------  -------
           Net cash used by investing activities        (41,563) (38,096)
                                                         ------  -------

Cash flow from financing activities:                             
 Borrowings on bank revolving credit loan                87,900   88,864
 Payment on bank revolving credit loan                  (80,300) (57,900)
 Payments under long-term debt                           (7,981)  (7,981)
 Proceeds from exercise of stock options                    453       15
                                                         ------  -------
           Net cash provided by financing activities         72   22,998
                                                         ------  -------
           Decrease in cash and invested cash           (14,831)    (187)
Cash and invested cash, beginning of year                14,936    7,300
                                                         ------  -------
Cash and invested cash, end of period                  $   (105)   7,113
                                                        =======  =======
Supplemented disclosures of cash flow information:               
 Cash paid during the period for:                                
   Interest                                            $  3,813    5,786
   Income taxes                                        $  3,400    1,100
 Noncash investing and financing activity:                       
   Assumption of liabilities in connection with                  
     mergers with and purchase of assets of marine               
     and diesel repair companies                       $     --   11,445
   Issuance of stock in connection with purchase of              
     marine transportation companies                   $     --   14,725
   Issuance of stock in connection with conversion of            
     7 1/4% convertible debentures                     $     --   50,000

           See accompanying notes to condensed financial statements.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                         
     In  the  opinion  of  management,  the accompanying  unaudited  condensed
financial  statements of Kirby Corporation and consolidated  subsidiaries  (the
"Company")  contain  all  adjustments  (consisting  of  only  normal  recurring
accruals)  necessary to present fairly the financial position as  of  June  30,
1994  and December 31, 1993, and the results of operations for the three months
and six months ended June 30, 1994 and 1993.

(1)  BASIS FOR PREPARATION OF THE SIX MONTH FINANCIAL STATEMENTS

     The condensed financial statements included herein have been prepared  by
the  Company,  without  audit, pursuant to the rules  and  regulations  of  the
Securities  and  Exchange Commission.  Although the Company believes  that  the
disclosures  are  adequate  to make the information presented  not  misleading,
certain  information and footnote disclosures, including significant accounting
policies,  normally included in annual financial statements have been condensed
or  omitted pursuant to such rules and regulations.  It is suggested that these
condensed financial statements be read in conjunction with the Company's latest
Annual Report on Form 10-K.

(2)  ACQUISITIONS

     On  July 1, 1994, a wholly owned subsidiary of the Company completed  the
purchase  of  a  U.S. flag tanker from Tosco Refining Company  ("Tosco").   The
single  hull  tanker  is  currently  undergoing  capitalized  restorations  and
modifications and is scheduled to be placed in service in September, 1994.  The
tanker will be utilized in the carriage of refined petroleum products in United
States coastwise trade and will operate under a three year charter.  The tanker
has  a  capacity  of 266,000 barrels and a deadweight tonnage of  37,750.   The
tanker will be retired from service in accordance with the Oil Pollution Act of
1990  ("OPA") on January 1, 1999.  The asset purchase was funded by  borrowings
under  the  Company's  established  bank  revolving  credit  agreement  and  is
accounted for in accordance with the purchase method of accounting.

     On  July 1, 1994, the Company announced the signing of a letter of intent
to  purchase from The Dow Chemical Company ("Dow"), 65 inland tank barges,  one
river towboat and two shifting boats.  Also, the Company will assume, with  the
lessors' consent, the lease or purchase of an additional 31 inland tank  barges
and two towboats presently in Dow's service.  Under the terms of the letter  of
intent,  Dow  will  enter into a long-term contract with a  subsidiary  of  the
Company  to  provide  service  for  all of  Dow's  inland  bulk  liquid  marine
transportation  requirements  for  a period  of  10  years.   Dow  is  a  major
manufacturer  of petrochemicals, industrial chemicals and related  bulk  liquid
products  and historically has used its own barges and outside towing resources
to  service  its inland marine transportation requirements.  Dow  produces  its
products  at  its  Freeport,  Texas  manufacturing  complex,  other  plants  in
Louisiana  and at various other United States locations.  A number of  the  Dow
plants,  as  well as their suppliers and customers, rely extensively  on  water
transportation for moving products between Dow's manufacturing facilities,  for
shipment  to the ultimate users and to move certain raw materials purchased  by

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    NOTES TO CONDENSED FINANCIAL STATEMENTS

(2)  ACQUISITIONS (Continued)

Dow.  The closing of the transaction, expected in the 1994 fourth quarter,  is
subject to appropriate regulatory filings and approvals presently underway  and
the  negotiation  of the necessary definitive agreements and approvals  by  the
management of the Company and Dow.  The asset purchase, if consummated, will be
funded  by borrowings  under the Company's  revolving credit  agreement. On July
21, 1994, a wholly owned subsidiary of the Company completed the purchase of 
three U.S. flag tankers from OMI Corp. ("OMI") for $23,750,000. The single hull
tankers will transport refined petroleum products primarily between the  
United States Gulf Coast, Florida and the mid-Atlantic states.  The  three
tankers currently operate in the spot market, however, effective October, 1994,
one  tanker goes under a six-months' charter and effective November, 1994,  one
tanker  is  chartered for a one year period.  Both of the charters have  option
periods.   Each  of the tankers has a total capacity of 266,000 barrels  and  a
deadweight  tonnage of 37,853.  In accordance with the OPA, the  three  tankers
will  be  retired from service on January 1, 2000.  Funding for the transaction
was provided through the Company's established bank revolving credit agreement.
The  operations  of  the three tankers are included as part  of  the  Company's
operations effective July 21, 1994, in accordance with the purchase  method  of
accounting.

(3)  TAXES ON INCOME

     Earnings before taxes on income and details of the provision for taxes on
income  for  United States and Puerto Rico operations for the three months  and
six months ended June 30, 1994 and 1993 are as follows:


                                   Three months ended   Six months ended
                                        June 30,            June 30,
                                     1994      1993      1994      1993
                                              ($ in thousands)
Earnings before taxes on income:                                         
                                                     
   United States                   $3,856     8,728    6,688     13,701
   Puerto Rico                      1,038       842    3,088      1,708
                                    -----     -----    -----     ------
                                   $4,894     9,570    9,776     15,409
                                    =====     =====    =====     ======
Provision for taxes on income:                                   
   United States:                                                
      Current                      $1,131     1,507    2,199      2,328
      Deferred                        799     1,763    1,335      2,936
      State and municipal              73        --      152         --
                                    -----     -----    -----      -----
                                   $2,003     3,270    3,686      5,264
                                    =====    ======    =====      =====
   Puerto Rico:                                                  
      Deferred                     $ (302)     (200)      --      (200)
                                    =====    ======    =====     ======


                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                        
(4)  INSURANCE DISCLOSURE

     In  March, 1994, the Company received $7,000,000 from Universal Insurance
Company   ("Universal"),   the  Company's  property  and   casualty   insurance
subsidiary, representing the redemption of 20,424 shares of Universal's Class B
voting  common stock and 24,360 shares of Universal's Class C non-voting common
stock.   The  March redemption reduced the Company's ownership  of  Universal's
voting common stock to 67% from 70%, prior to the redemption.  Collectively  to
date,  Universal  has  redeemed from the Company a total of  65,387  shares  of
voting  Class  B  common stock and 24,360 shares of non-voting Class  C  common
stock  for a total redemption price of $15,000,000.  Under previously announced
options  and  redemption rights included in the merger between Eastern  America
Insurance  Company ("Eastern America") and Universal, Eastern America Financial
Group,  Inc.  ("Eastern  America Group"), which is the  parent  of  the  former
Eastern America, could acquire 100% of Universal's stock over a period of up to
12  years.  Eastern America Group owns the remaining 33% of Universal's  voting
common stock.

(5)  CONTINGENCIES AND COMMITMENTS

     In  June,  1994,  the Company's wholly owned subsidiary, Dixie  Carriers,
Inc.,  received  notification from the United States  Environmental  Protection
Agency ("EPA") that it may be a potentially responsible party with respect to a
shipyard hazardous waste site in Slidell, Louisiana.  As a result of the  early
stage of this investigation and the limited information available regarding the
matter,  and  considering  that  over  250  other  parties  received  identical
notifications,  and  that Management does not recall ever doing  business  with
this  particular  shipyard, it is not possible for  the  Company  to  determine
whether  the  Company has any liability, either contractual or  statutory  with
respect  to  the matter referenced in the notice sent by the EPA,  or  if  such
liability exists, the amount thereof.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                         
Results of Operations

     The  Company reported net earnings of $6,090,000, or $.21 per share,  for
the  first  six  months of 1994, compared with net earnings of $10,345,000,  or
$.43  per  share, reported for the first six months of 1993.  Net earnings  for
the  1994  second quarter totaled $3,193,000, or $.11 per share, compared  with
net  earnings  of $6,500,000, or $.26 per share, reported for the corresponding
1993 quarter.

     The  Company  conducts  operations in  three  business  segments:  marine
transportation, diesel repair and property and casualty insurance.  The sum  of
the three business segment's pretax earnings exceeds the Company's consolidated
pretax  earnings due primarily to general corporate expenses.  A discussion  of
each segment follows:

Marine Transportation

     The  Company's  marine  transportation  segment  reported  transportation
revenues  for  the first six months of 1994 of $147,412,000, reflecting  a  21%
increase  when compared with $122,224,000 reported for the first half of  1993.
Second quarter 1994 transportation revenues equaled $74,025,000, an increase of
7% when compared with 1993 second quarter revenues of $69,451,000.

    Revenues for the 1994 first half and second quarter reflect the operations
during  the  1994  periods  of three marine transportation  companies  acquired
during  the  1993 year, TPT Transportation on March 3, AFRAM Lines  (USA)  Co.,
Ltd. on May 14 and Chotin Transportation Company ("Chotin") on December 21. All
three  of  the  acquisitions were accounted for under the  purchase  method  of
accounting.

     During  April and part of May, high water on certain waterways  curtailed
operations.  However, conditions were much improved over the 1994 first quarter
when transportation operations were curtailed to varying degrees by the adverse
winter  weather  conditions which hampered the efficiencies  of  operations  in
inland as well as coastal movements.

        As a provider of service for both the inland and offshore United States
markets,  the  marine transportation segment operates through  three  divisions
organized  around the markets it serves: the Inland Chemical Division,  serving
the  inland  industrial and agricultural chemical markets; the  Inland  Refined
Products Division, serving the inland refined products market; and the Offshore
Division, which serves the offshore petroleum products, container, dry bulk and
palletized cargo markets.

     Movements of inland industrial chemicals for the petrochemical  industry,
handled  by the segment's Inland Chemical Division, continued to reflect  signs
of  improvement as equipment utilization and rates continued to increase during
the  1994  first half.  Such increases primarily relate to improved performance
by the chemical manufacturers.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                         
Results of Operations, Continued

     The  Inland Chemical Division operates under long-term contracts and spot
movements  of  products.  Currently, the majority of such movements  are  under
term  contracts,  which,  may be less than current spot  market  rates.   Since
March,  1994,  the Division has experienced spot rate increases, however,  such
increases  are  not reflected in the majority of the contract movements,  until
such time as the contracts are renewed.

     Liquid  fertilizer and anhydrous ammonia movements during the 1994  first
half  and  second  quarter remain strong compared with the  corresponding  1993
periods.   With the 1993 year resulting in reduced yields and a  low  level  of
grain  stock,  partially  due to the 1993 upper Mississippi  flooding,  acreage
planting  has  increased  and the demand for nitrogen fertilizer  has  remained
strong.

    The Inland Refined Products Division, which moves inland refined petroleum
products (gasoline, diesel fuel and jet fuel), continued to experience a strong
demand  for  gasoline  movements during the 1994 first six  months  and  second
quarter.   Enhanced with the December 21, 1993 acquisition from  Chotin  of  53
inland  tank  barges and a transportation agreement that expires  in  the  year
2000,  the  Inland  Refined  Products  Division  substantially  increased   the
Company's  presence  in the contract and spot movements  of  refined  petroleum
products on the Mississippi River System.

     The Inland Refined Products Division, like the Inland Industrial Chemical
Division,  operates under long-term contracts as well as spot market movements.
During  the  first  half  of  1994, the majority of such  movements  were  spot
movements  which, are currently higher than the majority of movements performed
under  long-term  contracts.   The Inland Refined Products  Division  has  also
experienced  spot market increases and has benefited from its  higher  spot  to
contract percentage.

     The  Offshore  Division, which participates in both the  liquid  and  dry
markets,  experienced  significant weakness during  the  first  half  of  1994.
Offshore  movements of refined products have been particularly weak during  the
first  half,  even though the harsh winter season resulted in  an  increase  in
movements during the 1994 first quarter.  During such period, three tankers and
one barge and tug unit, which were engaged in the spot market trade, worked  in
the  northeast  delivering  heating oil.  Profitability  of  such  spot  market
movements  was  adversely  affected  by the winter  weather  conditions,  which
hampered  operating efficiencies.  During the 1994 second quarter, due  to  the
continued  weakness, up to 33% of the Company's spot market fleet was  idle  at
various  times.   Spot  market rates remain extremely competitive  and  current
period  term charters are difficult to obtain due to excess equipment  capacity
in the liquid market.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                         
Results of Operations, Continued

     Likewise, requirements for transportation of food commodities and related
products under the United States Government's preference aid cargo program  and
military household cargo movements have also remained weak throughout the first
half  of  1994.   The  Company was successful during the  1994  first  half  in
employing  its  three freighters and one barge and tug unit operating  in  this
market, however, at rates that were significantly lower than prior year  rates.
For  the  1994 first half, available movements have decreased, creating  excess
equipment capacity in the market and thereby, resulting in reduced rates.   The
softness  in  the  overall  preference aid cargo  market  has  also  negatively
affected  the  Company's other offshore barge and tug units, which periodically
operate  in  the  preference  aid  market as a supplement  to  their  long-term
contract  movements.   During the 1994 first quarter,  the  Company's  offshore
barge  and  tug unit experienced difficulties with collection of its containers
from  several  voyages  carrying preference aid cargo to  politically  unstable
Haiti.   Collectively,  the  voyages to Haiti reduced  the  Company's  earnings
before taxes by an estimated $1,750,000.

     The  Company's foreign flag container service, which commenced operations
in  February,  1994, provides a direct water transportation service  from  mid-
America  (Memphis) to Mexico and Central America.  Such service has encountered
aggressive  pricing from competitors that has resulted in a  much  slower  than
anticipated  acceptance of the service.  Although volumes are  increasing  with
each  voyage, the operation continues to suffer operating losses.   Evaluations
are  currently  underway and a decision will be made  in  the  near  future  on
whether  profitability can be attained soon enough to warrant  continuation  of
the service.

      Costs   and  expenses,  excluding  interest  expense,  for  the   marine
transportation  segment for the first six months of 1994 totaled  $134,668,000,
an  increase  of  30%  over the comparable first half of 1993  when  costs  and
expenses  totaled  $103,467,000.   Second  quarter  1994  costs  and  expenses,
excluding interest expense, increased to $67,756,000, reflecting a 16% increase
over  second  quarter  1993 totals of $58,187,000.   A  major  portion  of  the
increases  reflects the costs and expenses, including depreciation,  associated
with the acquisitions and merger consummated during the first half of 1993. The
initial  expense  of  the captive subsidiary required  the  recording  of  such
$1,100,000 of anticipated losses for the Company's applicable subsidiaries.  In
addition, the increases reflect higher equipment costs, welfare costs,  general
and  administrative  costs  and  inflationary  increases  in  other  costs  and
expenses.

     The  marine transportation earnings before taxes on income for  the  1994
first  six  months totaled $9,821,000 compared with $15,919,000 for  the  first
half  of  1993.   Second quarter 1994 pretax earnings were $4,721,000  compared
with $9,726,000 reported for the 1993 second quarter.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                         
Results of Operations, Continued

     The Offshore Division's coastwise refined products market is expected  to
continue to remain weak into the 1994 third quarter.  During the 1994 third and
fourth  quarters,  the market is anticipated to improve substantially  in  both
utilization and rates as refiners and wholesalers begin building inventories of
reformulated  gasolines, which are required to be ready for  sale  by  January,
1995,  to  meet  the requirements of the Clean Air Act.  By the middle  of  the
fourth  quarter, the Company will have at least 10 of its current  12  offshore
liquid  units  operating under term charters currently in place at  rates  that
should  achieve  or  surpass prior years' profitability and  are  significantly
higher than current spot market rates.

Diesel Repair

    The Company's diesel repair segment reported diesel repair and parts sales
revenues  of $21,816,000 for the first half of 1994, reflecting a 23%  increase
compared  with  $17,735,000 for the corresponding 1993 period.  Second  quarter
1994  revenues equaled $11,646,000, an increase of 44% when compared with  1993
second quarter revenues of $8,110,000.

     The  diesel repair segment is divided into two divisions organized around
the  markets they serve. The Marine Diesel Repair Division operates  nationwide
through  five  facilities that repair and overhaul marine  diesel  engines  and
reduction  gears,  and  sell related parts and accessories.   The  Rail  Diesel
Repair  Division provides replacement parts, service and support  to  shortline
railroads and industrial companies that operate diesel-electric locomotives.

     The  Marine  Diesel Repair Division continues to operate in an  extremely
competitive market that has negatively affected operating margins.  The Midwest
facility's inland marine dry bulk customers continue to suffer from the effects
of  the 1993 upper Mississippi River flood and current depressed coal and grain
markets.   The West Coast facility continues to feel the effects of the  United
States  military cutback and continued slow vessel maintenance from the Pacific
commercial fishing fleet operations.

    The Rail Diesel Repair Division commenced operations in January, 1994, and
generated  revenues  of  $4,045,000 during the first six  months  of  1994  and
$2,395,000  during the 1994 second quarter.  Substantially all of the  revenues
were  generated  from  direct  parts  sales.   For  its  first  six  months  of
operations, the Division recorded a modest profit.  The Division serves as  the
exclusive  shortline and industrial rail distributor of aftermarket  parts  and
service  for the Electro-Motor Division of General Motors ("EMD"), the  world's
largest manufacturer of diesel-electric locomotives.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                         
Results of Operations, Continued

     Costs  and  expenses, excluding interest expense, for the  diesel  repair
segment for the first six months of 1994 totaled $20,486,000, reflecting a  24%
increase compared with $16,524,000 for the first half of 1993.  Second  quarter
costs  and expenses totaled $10,849,000 compared with $7,560,000 for  the  like
1993  quarter,  reflecting  a  44% increase.  The  increase  for  both  periods
primarily  relates to the costs and expenses associated with  the  Rail  Diesel
Repair Division for 1994, as well as continued competitive conditions and their
negative effect on the profit margins in the Marine Diesel Repair Division.

     Earnings  before  taxes on income for the diesel repair  segment  totaled
$1,182,000  for the first half of 1994 compared with $1,095,000 for  the  first
half  of  1993.   Second  quarter 1994 earnings before  taxes  on  income  were
$719,000 compared with $479,000 reported for the 1993 second quarter.

Property and Casualty Insurance

     The  Company's  Puerto  Rican  property and  casualty  insurance  segment
reported  net premiums written for the first six months of 1994 of $56,587,000,
a 102% increase over the $27,971,000 reported for the like 1993 period.  Second
quarter 1994 net premiums written increased 114% to $30,470,000, compared  with
$14,214,000 reported for the second quarter of 1993.  With particular  emphasis
on  the  vehicle  single-interest  line  of  business,  the  segment  has  been
successful   in   generating  single-interest  business  from   new   financial
institution  customers and portfolio transfers.  In addition, a change  in  the
Puerto  Rico  export tax laws during 1994 resulted in lower  prices  on  United
States  manufactured automobiles sold in  Puerto Rico.  Such lowering of prices
has  resulted  in improved automobile sales, thereby enhancing Universal's  net
premiums written.

     Net premiums earned for the first six months of 1994 totaled $29,415,000,
a 30% increase over the $22,605,000 reported for the 1993 first six months. Net
premiums  earned for the 1994 second quarter increased 13% to $15,305,000  when
compared with $13,559,000 reported for the 1993 second quarter. Premiums earned
for amortization purposes are recognized over the life of the policies written,
therefore,  the substantial increase in premiums written will be  reflected  in
earnings  over future periods.  Net premiums earned continued to be  negatively
affected  by the high reinsurance costs for the commercial multiple-peril  line
associated  with  the  ceding  of a portion of  the  gross  premium  under  the
segment's  reinsurance program.  Some stabilization in such rates has  occurred
during the 1994 first half; however, the reinsurance rates remain high.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                         
Results of Operations, Continued

     Losses,  claims  and settlement expenses for the 1994  first  six  months
totaled $22,702,000 compared with $17,085,000 for the 1993 first half.   Second
quarter  1994  losses,  claims  and  settlement  expenses  totaled  $11,077,000
compared  with  $10,569,000  for the 1993 second quarter.   Such  33%  and  5%,
respectively, increases reflect the significant improvement in business volume,
with  particular  emphasis in the vehicle single-interest  and  double-interest
business  and  commercial multiple peril business.  The 1994 six months'  total
includes $2,000,000 of additional reserves for potential losses associated with
the  Company's Bermuda reinsurance subsidiary.  Since ceasing participation  in
the reinsurance market in 1990, the Company continues to take steps to expedite
its  withdrawal  from  the business and recognized the additional  reserve  for
potential, but as yet, unreported losses.

    Policy acquisition costs for the 1994 first half totaled $7,278,000, a 35%
increase  over  the 1993 first half costs of $5,388,000.  Second  quarter  1994
policy acquisition costs equaled $3,644,000, a 23% increase when compared  with
$2,971,000  reported  for the second quarter of 1993.  The  increase  for  both
periods  reflects  the growth in the commercial property  lines  of  insurance,
which  generally carry higher commission rates and the commission  earned  from
the substantial increase in the vehicle single-interest business.

     The  Company's  portion of the property and casualty insurance  segment's
pretax  earnings  for  the  six months ended June 30, 1994  totaled  $1,088,000
compared  with  $1,699,000  for the first half of 1993.   Second  quarter  1994
pretax  earnings of the property and casualty insurance segment  applicable  to
the Company totaled $1,038,000 compared with $837,000 for the second quarter of
1993.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                         
Financial Condition, Capital Resources and Liquidity

Redemption

     In  March,  1994,  the Company received $7,000,000  from  Universal,  the
Company's   property  and  casualty  insurance  subsidiary,  representing   the
redemption  of  20,424 shares of Universal's Class B voting  common  stock  and
24,360 shares of Universal's Class C non-voting common stock.  The March,  1994
redemption  reduced the Company's ownership of Universal's voting common  stock
to  67% from 70%, prior to the redemption.  Collectively to date, Universal has
redeemed  from  the Company a total of 65,387 shares of voting Class  B  common
stock  and  24,360  shares  of non-voting Class C  common  stock  for  a  total
redemption  price  of  $15,000,000.   Under previously  announced  options  and
redemption rights included in the merger between Eastern America and Universal,
Eastern  America Group, the parent of the former Eastern America, could acquire
100% of Universal's stock over a period of up to twelve years.  Eastern America
Group owns the remaining 33% of Universal's voting common stock.

Business Development

     As an expansion of the diesel repair segment, beginning in January, 1994,
the  Company  is  engaged through Rail Systems, Inc. ("Rail  Systems")  in  the
overhaul and repair of locomotive diesel engines and sale of replacement  parts
for  locomotives. Rail Systems serves shortline and industrial railroads within
the  continental  United States.  In October, 1993, EMD,  the  world's  largest
manufacturer of diesel-electric locomotives, awarded an exclusive shortline and
industrial  rail distributorship to Rail Systems to provide replacement  parts,
service and support to these important and expanding markets. Revenues for Rail
Systems  for  the  first six months of 1994 and the 1994  second  quarter  were
$4,045,000  and  $2,395,000,  respectively.  The  operations  of  Rail  Systems
reflected a nominal operating profit for both the 1994 second quarter and first
six months.

     In  March,  1994,  the  Company through its subsidiary,  Americas  Marine
Express,  Inc., began all-water marine transportation services between Memphis,
Tennessee  and  Mexico,  and Central America.  The new  transportation  service
utilizes a chartered foreign flag river/ocean vessel that offers direct sailing
between the locations.  The new service provides exporters and importers in the
north,  central and mid-south states with a direct shipping alternative between
the  locations on a fourteen day round trip basis.  The direct all-water  liner
service accepts 20 foot and 40 foot containers, including refrigerated and tank
containers, as well as other cargo on a space available basis.  As noted in the
Discussion  and  Analysis  of the Results of Operations,  Americas  Marine  has
encountered  aggressive pricing from competitors, slowing market acceptance  of
the  service.   The  operation continues to suffer operating  losses,  although
volumes are increasing with each voyage.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                         
Financial Condition, Capital Resources and Liquidity, Continued

     In May, 1994, the Company entered into a contract for the construction of
12  double  skin  29,000  barrel capacity inland tank barges  for  use  in  the
movement  of industrial chemicals and refined products.  Delivery of the  first
barge  is  schedule  for  November, 1994, with the  second  barge  expected  in
January,  1995, and the remaining 10 barges scheduled to be delivered one  each
month thereafter.  The Company has the option under the contract to purchase 12
additional barges, with an expiration option date of February 1, 1995.  The new
construction  program  is consistent with the Company's long-term  strategy  of
upgrading  its equipment to service the needs of its customers and  to  enhance
its market position.

     On  July  1,  1994, a wholly owned subsidiary of the Company purchased  a
single  hull U.S. flag tanker from Tosco.  The single hull tanker is  currently
undergoing capitalized restorations and modifications.  Scheduled to be  placed
in  service in September, 1994, the tanker will be utilized in the carriage  of
refined  petroleum products in United States coastwise trade and  will  operate
under a three year charter.  The tanker has a capacity of 266,000 barrels and a
deadweight  tonnage of 37,750 and is scheduled to be retired  from  service  in
accordance  with  the OPA on January 1, 1999.  The Company's  established  bank
revolving credit agreement provided funding for the transaction.

     On  July 1, 1994, the Company announced the signing of a letter of intent
to purchase from Dow, 65 inland tank barges, one river towboat and two shifting
boats.  Also, the Company will assume, with the lessors' consent, the lease  or
purchase  of an additional 31 inland tank barges and two towboats presently  in
Dow's service.  Under the terms of the letter of intent, Dow will enter into  a
contract  with  the Company's subsidiary to provide service for  all  of  Dow's
inland bulk liquid marine transportation requirements for a period of 10 years.
Dow is a major manufacturer of petrochemicals, industrial chemicals and related
bulk  liquid  products  and historically has used its own  barges  and  outside
towing resources to service its inland marine transportation requirements.  Dow
produces  its  products  at  its Freeport, Texas manufacturing  complex,  other
plants in Louisiana and at various other United States locations.  A number  of
the  Dow plants, as well as their suppliers and customers, rely extensively  on
water   transportation   for  moving  products  between   Dow's   manufacturing
facilities,  for  shipment  to  the ultimate users  and  to  move  certain  raw
materials  purchased  by  Dow.   The closing of the  transaction,  expected  in
December,  1994,  is  subject to appropriate regulatory filings  and  approvals
presently  underway and the negotiation of the necessary definitive  agreements
and approvals by the management of the Company and Dow.  The asset purchase, if
consummated, will be funded by borrowings under the Company's revolving  credit
agreement.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                         
Financial Condition, Capital Resources and Liquidity, Continued

     On July 21, 1994, a wholly owned subsidiary of the Company purchased three
U.S.  flag  tankers  from OMI for $23,750,000.  The single  hull  tankers  will
transport  refined petroleum products primarily between the United States  Gulf
Coast,  Florida  and  the  mid-Atlantic states.  The  three  tankers  currently
operate  in the spot market, however, one of the tankers goes under a six-month
charter  effective October, 1994 and one is chartered effective November,  1994
for  a one year period.  Both of the charters have option periods.  Each of the
tankers  has  a total capacity of 266,000 barrels and a deadweight  tonnage  of
37,853.   In  accordance with the OPA, the three tankers will be  retired  from
service  on  January  1, 2000.  Funding for the transaction  will  be  provided
through the Company's established bank revolving credit agreement.

Stock Repurchase

     On  August  1,  1994, the Board of Directors authorized  the  Company  to
purchase  up  to 2,000,000 shares of its own common stock.  Prior authorization
for  the  repurchase  of  the  Company common  stock  was  superseded  by  this
authorization.  The company is authorized to purchase the common stock  on  the
American  Stock  Exchange  and  in  privately  negotiated  transactions.   When
purchasing  common stock, the Company is subject to price, trading  volume  and
other  market  considerations.  Shares repurchased may be used  for  reissuance
upon  the  exercise of stock options, in future acquisitions for stock  or  for
other appropriate corporate purposes.

Liquidity

    The Company continued to generate significant cash flow from its operating
segments to fund its capital expenditures, asset acquisitions, debt service and
other  operating  requirements.   Net cash  from  operating  activities  before
changes  in assets and liabilities totaled $21,335,000 for the 1994  first  six
months and $7,723,000 for the 1994 second quarter compared with 1993 first  six
months of $26,577,000 and 1993 second quarter of $14,948,000.

     During  each  year, inflation has had a relatively minor  effect  on  the
financial results of the Company.  The marine transportation segment has  long-
term  contracts that generally contain cost escalation clauses whereby  certain
costs,  including  fuel  can  be passed through to  its  customers,  while  the
segment's short-term, or spot business, is based principally on current prices.
In  addition, the marine transportation assets acquired and accounted for using
the  purchase  method of accounting were adjusted to a fair market  value  and,
therefore,  the  cumulative  long-term effect on inflation  was  reduced.   The
repair  portion  of  the diesel repair segment is based on  prevailing  current
market  rates.   For the property and casualty insurance segment,  97%  of  its
investments  were  classified as available-for-sale or short-term  investments,
which consist primarily of United States Governmental instruments.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations
                                         
Financial Condition, Capital Resources and Liquidity, Continued

     Universal  is  subject to dividend restrictions under  the  stockholders'
agreement  between  the  Company, Universal  and  Eastern  America  Group.   In
addition,  Universal  is subject to industry guidelines  and  regulations  with
respect to the payment of dividends.

     The  Company has no present plan to pay dividends on common stock in  the
near future.

                KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
                          PART II - OTHER INFORMATION
                                         
Item 1.   Legal Proceedings
- -------   -----------------

     For  a  detailed  explanation of the material pending  legal  proceedings
against  the Company, please refer to the Form 10-K for the year ended December
31, 1993.

Item 6.   Exhibits and Reports on Form 8-K
- -------   --------------------------------

(a)  Exhibits:

     11.0 Computation of Earnings per Common Share.

(b)  Reports on Form 8-K:

     There were no reports on Form 8-K filed for the six months ended June 30,
1994.




                                  SIGNATURES

     Pursuant to the requirements of the Securities and Exchange Act of  1934,
the Registrant has duly caused this report to be signed on its behalf by  the
undersigned thereunto duly authorized.


                                   Kirby Corporation
                                   (Registrant)



                                    By:  G. Stephen Holcomb
                                         -----------------------------
                                         G. Stephen Holcomb
                                         Vice President and Controller

Dated:    August 5, 1994