The Albany and Eastern Railroad was created when the BNSF Railway

BNSF Railway

The BNSF Railway is a wholly owned subsidiary of Berkshire Hathaway Inc., and is headquartered in Fort Worth, Texas. It is one of seven North American Class I railroads and the second largest freight railroad network in North America, second only to the Union Pacific Railroad, its primary...

 spun off its Sweet Home Branch Line in May 1998. In November 2000, the AERC was combined with the Willamette Valley Railway

Willamette Valley Railway

The Willamette Valley Railway is a short-line railroad that operates in the Willamette Valley of Oregon. It leased a line from Woodburn to Stayton from the Southern Pacific Transportation Company in February 1993, as well as a branch from Geer west to Salem , and purchased the property in 1996...

 but maintained the AERC name. It operates about 49 miles (78.9 km) of track and is based in Lebanon, Oregon

Lebanon, Oregon

Lebanon is a city in Linn County, Oregon, United States. Lebanon is located in northwest Oregon, southeast of Salem. The population was 12,950 at the 2000 census and the 2008 census data shows the population at 15,397.-Geography:...

. The line runs from Albany

Albany, Oregon

Albany is the eleventh largest city in the U.S. state of Oregon, and is the county seat of Linn County. It is located in the Willamette Valley at the confluence of the Calapooia River and the Willamette River in both Linn and Benton counties, just east of Corvallis and south of Salem. It is...

 to Mill City

Mill City, Oregon

Mill City is a city in Linn and Marion counties in the U.S. state of Oregon. The population was 1,537 at the 2000 census. It is on the North Santiam River, downstream from Detroit Lake....

. At the Albany end of the line it connects to Union Pacific and BNSF lines.