Only after the Lower Austrian State Railway Law was passed in 1895 did work begin on the project. Owing to the difficult terrain that the railway would have to cross, it was decided to build it to a narrow gauge. The gauge of , as with all narrow-gauge railway undertakings in the Danube Monarchy, was made necessary by the military administration. Rolling stock used in military service on railways in Bosnia and Hercegovina was gauge and would need to be brought in. The railway's alignment would be built to a minimum curve radius of 80 m. In 1896, building work by the Lower Austrian State Railway Office began with acting director Engineer Josef Fogowitz in charge.