Settlers celebrated the arrival of the first train to arrive in Panama City in 1908. The Bay Line Railroad carried timber to the sawmill, goods to residents, and passengers. This train arrived daily from Dothan, Alabama. Spur lines were constructed to Millville, St. Andrew and Lynn Haven in 1909-1915.

The Birmingham, Columbus and St. Andrew Bay Railroad ran from Chipley to its southern most port, Southport, beginning in 1912. The passenger rate for railroad was four cents per mile. From the Southport train station, passengers took a boat across the bay into Lynn Haven.

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