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.
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. 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 the branch spanning from
Campbellton, Florida, to Graceville was completed on July 14, 1971. The A&SAB purchased the small yard and wye track in Graceville from the vacating Seaboard and continued serving the city. == Notes ==