The investment will fund the initial phase of the S-Bahn project, which involves building a second track between Tisis, Austria, and Nendeln in Liechtenstein, together with the reconstruction of the stations at Schaanwald and Nendeln, to allow the operation of a half-hourly peak service from the end of 2015.

Meanwhile Swiss Federal Railways (SBB) is conducting a technical study for the Canton of St Gallen for the €83m second phase, entailing the construction of a second track on the section between Buchs and Sevelen and track alterations Buchs. This will allow the extension of half-hourly services throughout the day by removing potential conflicts between regional services, and freight and long-distance traffic and is expected to be completed by 2018.

The S-Bahn services will be operated by Austrian Federal Railways (ÖBB).