The Texas South-eastern Railroad Company was incorporated on October 9, 1900 and has remained independent during its entire existence. The 10-mile branch between Blix and Lufkin was built by the Texas Southeastern railroad in 1908. TSE is still an active short line operating only in Diboll, Texas. The section of track between Blix and Lufkin was sold to the Angelina & 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&NRR inside Lufkin to move products between industries and the UP main line. The branch is abandoned from Peavy to just NE 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).
The TSE originally operated to move various products around the East Texas area and provided limited passenger service between Lufkin and various nearby towns.