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After the American Civil War (1861–1865), William Mahone, a civil engineer and hero of the Battle of the Crater, was the driving force in the linkage of 3 railroads, including the V&T, across the southern tier of Virginia to form the Atlantic, Mississippi & Ohio Railroad (AM&O), a new line extending from Norfolk to Bristol, Virginia in 1870.However, the Financial Panic of 1873 wrecked the AM&O's finances.The Roanoke Shops, with its workforce of thousands, is where the famed classes A, J, and Y6 locomotives were designed, built, and maintained.New steam locomotives were built there until 1953, long after diesel-electric had emerged as the motive power of choice for most North American railroads.

Roanoke's location in the Blue Ridge Mountains, in the middle of the Roanoke Valley between Maryland and Tennessee, made it the transportation hub of western Virginia and contributed to its rapid growth.The Carolina Road branched off in Cloverdale, Virginia to Boones Mill, Virginia, and on to the Yadkin River Valley.The Roanoke Gap proved a useful route for immigrants to settle the Carolina Piedmont region.At Roanoke Gap, another branch of the Great Wagon Road, the Wilderness Road, continued southwest to Tennessee.In the 1850s, Big Lick became a stop on the Virginia and Tennessee Railroad (V&T) which linked Lynchburg with Bristol on the Virginia-Tennessee border.

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About 1960, N&W was the last major railroad in the United States to convert from steam to diesel power.