The Atlanta and St. Andrews Bay Railroad , also known as the Bay Line, was a Class I railroad which operated in Alabama and Florida. The company was founded in 1906 and opened its mainline between Dothan, Alabama, and Panama City, Florida, in 1908. Later reclassified as a short-line railroad, its assets were acquired by the Bay Line Railroad in 1994. History As with many railroads in the region, the A&SAB began in the minds of timber investors and land developers seeking to access the agricultural resources of the Florida Panhandle and South Alabama. Chief among them was A. B. Steele, who created the railroad to build south out of Dothan towards the Gulf Coast. The company incorporated on February 14, 1906, and opened its line between Dothan and Panama City on July 15, 1908. Panama City was incorporated the following year at the terminus of the line. Plans were soon made to extend the railroad north to Atlanta, however financial difficulties and pressure from the Central of Georgia railroad put an end to any plans for extension. World War II brought about a considerable increase in traffic on the A&SAB. Several military bases in the vicinity of Panama City ensured the Bay Line would remain a hotbed of activity for the duration of the war. Shortly after the war in 1947, the A&SAB was granted Class I status. The company offered sleeper and coach passenger train service nightly between Panama City and Atlanta Union Station via Albany and Macon. The trains went over Central of Georgia Railway tracks from Dothan, Alabama, to Atlanta. At some point between 1955 and 1956 A&StA terminated all passenger service --coach and sleeping car service. TOFC service began in 1962 with the construction of ramps at Panama City and Cottondale. Additional expansion came with the construction of a branch line to Graceville in 1971. In 1979 International Paper sold the railroad to Southwest Forest Industries, and the railroad changed hands again with the sale of Southwest Forest Industries to the Stone Container Corporation in 1987. In 1989, Stone Container Corporation purchased from CSX Transportation a branch line from Grimes to Abbeville, Alabama. The new railroad, the Abbeville-Grimes Railway Company, was operated by the A&SAB. On January 1, 1994, the Rail Management Corporation acquired the assets of the railroad and created a new company, the Bay Line Railroad, to operate it. Graceville branch Construction of