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Texas & Eastern Railroad operates freight service from the connection with Union Pacific in Palestine, TX 30 miles to Rusk, TX serving Anderson and Cherokee counties in eastern Texas. Traffic consists of construction aggregates, industrial products and chemicals.
Founded in 1881 by the state of Texas, as the Texas State Railroad to haul freight, regular service on the line was ended in 1921. The state leased the line to private companies until 1969 and then turned it over to the Texas Parks and Wildlife Department in 1972 who operated it as a living history museum. In 2007, the railroad was transferred to the Texas State Railroad Authority, and the line was subsequently leased to Texas & Eastern Railroad in May of 2017. The historic excursion trains are still operated under the name Texas State Railroad and the common carrier freight operation is under the Texas & Eastern Railroad (TSR) identification.