Today, more and more investors are exploring barge investments as another means of portfolio diversification. Investors include corporations, trusts, partnerships and individuals. Why? The reasons are convincing:
All barges operated by Heartland Barge are part of a “single” pool with assets provided from investors. Investors share revenues, expenses and the resulting earnings based on their proportion of participating barges in the entire barge pool. Accounting adjustments are made to ensure equity and reflect the incremental differences that occur from loading different hull sized barges and the additional maintenance expenses that traditionally occur as barges age. The “pool” approach allows investors to realize the advantages of economies of scale in marketing and operations, and not worry that there are any conflicts of interest that favor one pool participant versus another. The earnings from the pool are distributed monthly.
Average long-term annual operating earnings have generally provided return in a range of 10-12 percent.
Asset Value Stability
Investing in a barge represents tangible property – a hard asset – as opposed to the volatility associated with paper investments.
Barge assets are hard assets that can be sold. The intrinsic value is assessed objectively. Also, barge ownership provides cash flow on a monthly basis.
Purchasing a barge provides a means to shelter other income due to the accelerated depreciation schedules allowed for this type of asset. A decreased tax burden puts more money in your pocket and makes cash available for other uses.
Barges move “basic” commodities that are critical to the agricultural, construction, industrial and energy sectors and are unlikely to be supplanted. Barge design has changed little over the last 70 years providing little risk for technological obsolescence. Federal laws preclude foreign ownership control for barges in the nation’s transportation fleet.
When you consider all of these benefits, your next question should be; “Who will manage my barge assets?” and “How will I maximize my barge investment earnings potential?”
We’re on solid financial footing. We’re Heartland Barge Management, and we have a proven track record of success for our investors.