By 1893, the investors had formed the Texas City Improvement Company (TCIC), which plotted and filed the townsite plan. A post office opened in 1893 with Frank B. Davison appointed as the town's first postmaster, to serve about 250 people who had moved there from Minnesota and Michigan. TCIC also received permission from the federal government to dredge an eight-foot channel in the bay from Bolivar Roads (at the east end of Galveston Island) to serve Texas City. In 1894, the channel was first used commercially. TCIC eventually dredged the channel to a 40-foot depth and extended the length of the port to 1.5 mi. TCIC also built a 4-mi railroad to the Texas City Junction south of town, where it connected to two other rail lines: Galveston, Houston and San Antonio and Galveston-Houston and Henderson.