'Survivor' Star Caleb Bankston -- We'll Pay For His Funeral, Says Railroad Company

"Survivor" star Caleb Bankston -- who died in a freak train derailment Tuesday -- will be buried Thursday in Alabama ... and the railroad company where he worked will foot the bill for the funeral ... TMZ has learned.

A rep for Watco Companies -- which operates the Alabama Warrior Railway where the derailment occurred -- says it's been in contact with Bankston's family ... and has promised to cover all of the burial expenses.

TMZ broke the story ... the 26-year-old train engineer was crushed between two rail cars when one of the cars unexpectedly jumped the tracks.

The cause of the derailment is still under investigation.