Indiana's central location in the US and its position between Lake Michigan to the north and the Ohio River to the south gave the state its motto, "The Crossroads of America." Historically, the state took advantage of its strategic location by digging canals to connect Indiana rivers and by building roads and railroads to provide farmers access to national markets.
The success of the state's first railroad, completed in 1847 between Madison and Indianapolis, led to a tenfold increase in track mileage during the 1850s, and more railroad expansion took place after the Civil War. In 2000, there were 42 railroads operating on 4,685 rail mi (7,539 km) of track; Class I railroads operated 3,418 route mi (5,500 km) of track in Indiana. About 62% of the rail freight terminating within the state in 1998 was coal. Regularly scheduled Amtrak passenger trains served Indianapolis, Fort Wayne, Hammond/Whiting, South Bend, and 10 other stations in the state. Indianapolis and other major cities have public transit systems subsidized heavily by the state and federal governments. The South Shore commuter railroad connects South Bend, Gary, and East Chicago with Chicago, Illinois.
The east–west National Road (US 40) reached Indiana in 1827, and the north–south Michigan road (US 421) was built in the late 1830s. In 2000, there were 93,607 mi (150,645 km) of public roads, of which 73,664 mi (118,550 km) were considered rural. In 2001, motor vehicle registrations totaled 5,752,405. There were 3,857,139 licensed drivers in 2001. Several of the nation's largest moving companies have their headquarters in Indiana.
Water transportation has been important from the earliest years of European settlement. The Wabash and Erie Canal, constructed in the 1830s from Fort Wayne east to Toledo, Ohio, and southwest to Lafayette, was vital to the state's market economy. In 1836, the state legislature earmarked $10 million for an ambitious network of canals, but excessive construction costs and the financial panic of 1837 caused the state to go virtually bankrupt and default on its bonds. Nevertheless, the Wabash canal was extended to Terre Haute and Evansville by the early 1850s.
The transport of freight via Lake Michigan and the Ohio River helped to spark Indiana's industrial development. A deepwater port on Lake Michigan, which became operational in 1970, provided access to world markets via the St. Lawrence Seaway. Indiana Harbor handled 16.1 million tons of goods in 2002, and the tonnage at the port of Gary was nearly 9.7 million.
In 2000, there were 516 public and private airports in the state. Indianapolis International Airport is the state's busiest airport, with 3,629,716 passengers enplaned in 2000.