The Texas South-Eastern Railroad Company was incorporated on October 9, 1900 and has remained independent during its entire existence. It originally operated by moving various products around the East Texas area and provided limited passenger service between Lufkin and various nearby towns. While still an active short line today, operating in Diboll, TX, it is only a small operation compared to its once 78-mile presence.
The TS-E lines in and around Lufkin were the result of the company's intent on connecting to the Cotton Belt line that ran through town, combined with the acquisition of many logging railroads in the area.
The 10-mile branch between Blix and Lufkin was built by the Texas Southeastern railroad in 1908. It was sold to the Angelina and Neches River railroad in 1996, and the last TSE train made its run on this line that year. A section of this track is still used by the A&NR inside Lufkin to move products between industries and the UP main line. The branch is abandoned from Peavy to just northeast of Farrell.
The branch connected in Blix to the "main" line ran from Diboll to Fastrill, Texas. A portion of the TSE "main" from Diboll through Blix to Vair is now the Texas State Railroad tourist line. The section NW of Vair is abandoned. Towns on this section are Raville, Neff, Walkerton, Anderson Crossing, Kenley, Bluff City, Lehane and Fastrill.
Another abandoned section of the TSE extended NE from Diboll to Cushing, Ashford and up to Farber (Frostville) on the Cotton Belt (SSWT).