Atlantic and East Carolina Railway: "The Tobacco Belt Route"

Last revised: August 2, 2026

The Atlantic and East Carolina Railway (A&EC, reporting mark AEC) was a short-line railroad that operated the historic line of the Atlantic and North Carolina Railroad between Goldsboro and Morehead City, North Carolina. Though the A&EC itself was organized only in 1939, its physical plant and traffic base dated to the 1850s. For two decades it provided essential freight and passenger service across the coastal plain under the nicknames “Mullet Line” (for the large volume of salt mullet and other seafood moved from the coast) and “Tobacco Belt Route.” In 1957 it became a Southern Railway subsidiary; the trackage remains in active service today under North Carolina Railroad ownership with Norfolk Southern operation.

An EMD buider's photo featuring new Atlantic & East Carolina F2A #400 in July, 1946. This was one of two the railroad purchased from the builder (#401).

Origins: The Atlantic and North Carolina Railroad

The story begins with the Atlantic and North Carolina Railroad Company (A&NC). The North Carolina General Assembly incorporated the company by an act ratified on December 27, 1852, with authorized capital of $900,000. Stockholders organized the company on January 20, 1854 (some accounts list formal organization in June 1854). Construction proceeded in sections under contract. By early 1857 trains were running a short distance above New Bern; the line between Goldsboro and New Bern was completed soon afterward. Full operation from Goldsboro through Kinston, New Bern, and Havelock to Morehead City began on or about June 1–7, 1858. The completed main line measured approximately 94–96 miles.

The original track was laid to 5-foot broad gauge, later converted to standard gauge (4 ft 8½ in). At Goldsboro the A&NC connected with the North Carolina Railroad (westward toward Raleigh and Charlotte) and the Wilmington & Weldon Railroad (later part of the Atlantic Coast Line). At the eastern end, Morehead City offered steamer connections across Bogue Sound to Beaufort and access to a developing deep-water harbor. The railroad immediately became a vital outlet for eastern North Carolina’s agricultural produce, timber, and fisheries.

At A Glance

Headquarters	Kinston, North Carolina
States Served	North Carolina
Dates Of Operation	1858 - 1958
Formation Date	August 1, 1939
Genesis	Atlantic & North Carolina Railroad Company (Incorporated 1852, opened 1858)
Route Miles	96 (Goldsboro–Morehead City) plus Cherry Point spur
Track Gauge	4 Feet, 8 ½ Inches
Principal Lines	Goldsboro - Morehead City, North Carolina Havelock - Cherry Point, North Carolina
Prinicipal Commodities	Tobacco, seafood (“mullet”), agricultural products, lumber, military materials, port freight
Passenger Service	Daily Goldsboro–Morehead City train, discontinued ~1950–1951
Dieselization	First mainline diesel 1946; completed by 1951
Acquisition	Southern Railway stock purchase, mid-September 1957
Reporting Mark	AEC
Successor Track Ownership	North Carolina Railroad Company (1989 merger)
Current Operator	Norfolk Southern

Civil War and the Late Nineteenth Century

Like most Southern railroads, the A&NC suffered heavily during the Civil War. Federal forces captured the section from New Bern to the coast in March 1862 and extended control to Kinston by the end of the year. In March 1865 the remainder of the line fell into Union hands and was operated as a military railroad until returned to the company on October 24, 1865. Postwar rehabilitation required a $1.5 million First Sinking Fund Mortgage in 1868.

The railroad continued under various managements. It owned the Atlantic Hotel at Morehead City (rebuilt after a hurricane destroyed an earlier structure at Beaufort). Political interference was common; the state-controlled line was sometimes described as a “political toy train.” Lease attempts came and went, including a short-lived arrangement with the Midland North Carolina Railroad in 1882–83. In September 1904 the Howland Improvement Company leased the property for 91 years; that lease later passed to the Norfolk & Southern Railroad (and its 1910 successor). Norfolk Southern operated the line until the early 1930s.

Independent Operation and Formation of the A&EC

The Great Depression brought crisis. Norfolk Southern entered receivership and defaulted on lease payments. The A&NC board cancelled the lease (formally around 1934–35), and the state-controlled company resumed direct operation in 1935. The “Mullet Line” struggled under Depression conditions. In 1939 a new private operator stepped in.

On June 19, 1939, the Atlantic and East Carolina Railway Company was chartered under North Carolina law with authority to lease and operate the A&NC. Effective August 1, 1939, the ICC-approved lease transferred operations to the A&EC for a 25-year term (later amended). Headquarters were established at Kinston. The new company was organized and controlled by H. P. (Harry) Edwards of Sanford, North Carolina—a short-line specialist known for gasoline railcars—and associates E. R. Buchan and I. A. Bolich. The annual lease payment was $60,500.

Edwards quickly improved the property. Political appointees were dismissed, producing substantial first-year operating savings. The railroad laid roughly 100,000 new crossties, rebuilt locomotives, repaired buildings, and acquired its first diesel. Early traffic setbacks occurred when the outbreak of war in Europe disrupted tobacco exports, but Edwards cultivated new business, including asphalt movements for the Hatteras Oil Company at Morehead City. The A&EC adopted the slogan “Tobacco Belt Route,” reflecting the importance of flue-cured tobacco from the coastal plain, while the longstanding “Mullet Line” nickname persisted because of seafood traffic.

World War II and Peak Years

World War II transformed the railroad’s role. Construction of Marine Corps Air Station Cherry Point near Havelock generated enormous traffic. The A&EC (through a subsidiary Cherry Point Railroad Company) built a short spur from Havelock to the base. In 1942 alone the line handled 32,000 carloads of sand and gravel for construction, plus subsequent military materials and supplies. The A&NC later purchased the spur from its lessee because it was considered an essential part of the property. The railroad also supported the broader military presence in eastern North Carolina, including connections ultimately linked to Camp Lejeune.

Passenger service remained modest but useful: a once-daily train between Goldsboro Union Station and Morehead City, timed to connect with Southern Railway overnight trains for central and western North Carolina. Service continued into the early 1950s and was discontinued around 1950–1951 (some sources indicate final runs by 1954).

Freight traffic consisted of tobacco, seafood and other agricultural products, lumber and forest products, coal, asphalt, and military shipments. The line’s eastern terminus at the Port of Morehead City gave it strategic importance for both commercial and defense movements.

System Map (1952)

Dieselization and Southern Acquisition

In July 1946 the A&EC became the shortest railroad in North America to place mainline diesel power in regular service. By 1951 the locomotive roster was fully dieselized. This early conversion improved reliability and reduced costs on a lightly engineered secondary main line.

Southern Railway developed serious interest in the A&EC in 1953 after studying its traffic base and the industrial potential of eastern North Carolina. In October 1954 Southern applied to the Interstate Commerce Commission for authority to acquire the company. After extensive hearings, the ICC approved the purchase. In mid-September 1957 Southern bought all outstanding stock of the Atlantic and East Carolina Railway.

The A&EC continued for a time as a separately operated short-line subsidiary. Southern believed that integration with its larger system would accelerate industrial development, improve service, and strengthen the Port of Morehead City—an outcome long sought by regional interests. The Atlantic Coast Line and the original Norfolk Southern opposed the transaction, but public sentiment in eastern North Carolina generally favored it.

**Atlantic & East Carolina Railway Diesel Locomotive Roster**
Model (Builder)	Road Number	Builder Number / Date	Notes / Disposition
30-ton (Plymouth)	7	4019 / Dec 1939	Later to industrial users
44-ton (GE)	8	18145 / Oct 1943	Rebuilt; later industrial service
44-ton (GE)	402 (ex-6)	15774 / May 1943	Ex-US Army 7085; to Laurinburg & Southern, then Southern
44-ton (GE)	403 (ex-7 2nd)	15766 / Feb 1943	To Southern
SW1 (EMD)	404 (ex-9)	4582 / Apr 1947	To Southern 404 / later 1007
F2A (EMD)	400	3419 / Jun 1946	To Southern 400
F2A (EMD)	401	3420 / Jul 1946	To Southern 401
RS1 (Alco)	405 (ex-500)	79047 / Apr 1951	Trade-in
GP7 (EMD)	406 (ex-501)	14571 / May 1951	To Southern 406 / later 8230

Later Corporate History and Present Status

The underlying real estate remained with the Atlantic and North Carolina Railroad Company, which was majority state-owned. On September 29, 1989, the A&NC was merged into the North Carolina Railroad Company (NCRR), consolidating a continuous state-owned corridor from Morehead City to Charlotte. Norfolk Southern (formed by the 1982 combination of Southern and Norfolk & Western) obtained exclusive local and overhead freight trackage rights over the NCRR. For a period, NS granted corresponding rights to its A&EC subsidiary over the former A&NC segment (roughly mileposts EC-0.0 to EC-94.7). In 2003 the A&EC was merged into Norfolk Southern Railway itself.

Today the original Goldsboro–Morehead City main line remains active. It is owned by the North Carolina Railroad Company and operated by Norfolk Southern. Local switching and some port-related work at Morehead City has involved short-line partners such as Carolina Coastal Railway. The Cherry Point spur continues to serve Marine Corps Air Station Cherry Point. The corridor still moves agricultural products, industrial commodities, military traffic, and port freight, fulfilling the economic role envisioned when the rails were first laid in the 1850s.