 By 1912, United Fruit had two concessions it had purchased with government approval.One was to build a railroad from Tela to Progreso in the Sula Valley, and the other was to build a railroad from Trujillo to the city of Juticalpa in Olancho.In 1913, United Fruit established the Tela Railroad Company and shortly thereafter a similar subsidiary, the Trujillo Railroad Company; these two railroads managed the concessions which the Honduran government granted them.