Gulf and Ohio Railways purchased both lines in 1986 and created a new subsidiary, the Alabama and Florida Railroad, to operate them. The railroad began operating on July 28, 1986.[4] The company abandoned the former Yellow River Railroad in December 1987. The A&F also leased a 2.9-mile (4.7 km) line from the Andalusia and Conecuh Railroad in the vicinity of Andalusia, Alabama.[5]
The Gulf and Ohio sold the railroad to A&F Inc. on August 12, 1990. Pioneer Railcorp acquired the assets of the company on November 23, 1992, and organized a new railroad, the Alabama and Florida Railway, to operate the lines.[5][6]