Why Minnesota

Foundations of Commerce

Minnesota's diverse transportation infrastructure, extensive fiber-optic network and affordable energy give businesses the logistical advantages needed to be globally competitive.

Businesses have a wide spectrum of transportation choices

Minnesota's Light Rail System

Minnesota’s central location allows businesses to select from truck, carload rail, water, intermodal rail and air transportation modes to move freight.
Although most of Minnesota freight moves by truck, air transportation is the fastest growing mode for business shipments.

Air Transportation

Minnesota has an extensive air cargo network with 24 airports served by air cargo carriers. Main airports with cargo services include Minneapolis-St. Paul, Duluth and Rochester.

To offer easier access to global markets, an international air cargo regional distribution center will be built in the city of Rosemount, Minnesota. A tax-free zone to encourage freight-forwarded development will surround the distribution center, which is expected to open in 2010.
In 2006, the Minneapolis-St. Paul Airport served 35.6 million people, ranking 11th in the country and 20th worldwide in passenger traffic, according to preliminary data from Airports Council International.

Source: Airports Council International.
Note: Preliminary data.

According to Business 2.0, Minneapolis-St. Paul is one of the most business-friendly airports in the country. The airport offers cutting-edge technology advances for time-constraint business travelers such as five “hyperchange” stations that can restore laptop, cell phone or PDA power faster than standard outlets. The airport also offers three private offices and 12 service cubicles available 24 hours a day. Extras include dressing rooms, semiprivate work stations equipped with phones and free Wi-Fi access.

Airplane in flight

Airlines serve 131 non-stop markets from Minneapolis-Saint Paul Airport, including 116 domestic and 14 international markets. Compared to other metropolitan areas in the United States, only Denver serves more non-stop markets per capita.

Regional airports offer scheduled passenger service to Bemidji, Brainerd, Duluth, International Falls, Saint Cloud, Rochester, Chisholm, Hibbing and Thief River Falls.

Road Transportation

Comparing 362 metropolitan areas in 10 transportation measures, Expansion Management ranked Minneapolis-St. Paul third for transportation logistics nationwide, ranking particularly high in interstate highways (5th), railroad service (7th), and transportation and warehousing industry (14th).

According to the Minnesota Department of Transportation, the state has more than 600 million tons of products transported. Truck and carload rail shipments accounted for nearly 73 percent of those shipments. Air transportation is expected to more than double by 2020.

Mn/PASS is an innovative electronic toll collection system that gives motorists more choices on Interstate 394 and allows them to bypass congested lanes. Implemented in 2005, solo motorists who have a MnPASS account and transponder can use (for a modest fee) the MnPASS lanes and enjoy "express" service between downtown Minneapolis and the western suburbs.

Water Transportation

The Mississippi River system stretches over 222 miles and comprises five ports whose combined tonnage in 2006 was nearly 13 million. Over 60 percent of Minnesota’s agricultural products are shipped down the Mississippi River.
Minnesota’s four Lake Superior ports — Duluth, Two Harbors, Taconite Harbor and Silver Bay — transported more than 67 million tons in 2006, mainly taconite, steel products and minerals, and other products such as wind turbine equipment.

The Magdalena Green brings wind turbine blades from Denmark bound for
Mower County, Minnesota.

Telecommunications companies are flourishing in Minnesota

ADC Telecommunications provides the network infrastructure equipment and professional services needed to deliver voice, video, Internet and data communications around the world. The company employs nearly 6,000 people worldwide and operates in more than 100 countries.

University of Minnesota (U of M)-Twin Cities is the 12th most wired university in the country, according to a 2006 survey conducted by PC Magazine and The Princeton Review. Some of the qualities that made U of M rank high among 240 colleges are 5GB of online storage per student and the WebCT coursework system, an extensive portal that includes research papers, links to Internet sites and podcast (audio and video) for classroom lectures.

The Twin Cities ranked ninth on Intel’s 2005 list of “Most Unwired Cities,” which ranked the top 100 U.S. cities and regions for the greatest wireless Internet accessibility.
Midwest Wireless offers broadband Internet services for businesses in Southern Minnesota. State officials honored the Mankato-based company for its contribution to rural economic development.

Businesses have access to affordable energy sources

Data show that in 2006, Minnesota's average price for electricity (per kilowatt-hour) was lower than the national average for the three main customer classes, according to the Energy Information Administration (EIA).

Minnesota's average price for electricity

Data from EIA shows that Minnesota gas prices were lower than the national average in 2005 for the three major types of customers.

Minnesota businesses see opportunity in environmental and renewable energy

The largest utilities in the state, Xcel Energy and Minnegasco/Reliant Energy, offer programs and rebates to help businesses reduce the cost of energy. The programs include a motor efficient rebate program (Xcel Energy) and a dual fuel program (Minnegasco/Reliant Energy).
Minnesota is a pioneer in the use of wind energy, a renewable energy source. Minnesota ranks fourth nationwide in wind energy production with 895 megawatts (MW) of installed capacity, enough to power more than 295,000 homes per year. As of 2007, wind turbines to generate an additional 201 MW of wind energy were under construction.
Minnesota’s government has long been a great supporter of wind power, and the legislature in 2007 enacted the most aggressive renewable goal on the country: 25 percent of the state’s electricity must come from renewable sources by 2025.
In 2005, Minnesota ranked fourth nationwide in ethanol production capacity, with an annual production of nearly 496 million gallons, according to the Renewable Fuels Association.
Minnesota is the only state that requires the statewide use of 10 percent ethanol in gasoline. And that will increase to 20 percent by 2013.