The 35 mile railway between Edinburgh and the Borders in Scotland will be completed in 2014.
Transport Scotland has selected three consortia – BAM, IMCD and New Borders Railway – as the preferred bidders for the £300m ($422m) project, which is scheduled to begin late next year.
The contractor for the project will be appointed in 2011, according to heraldscotland.com.
The trains along the route will offer a 55 minute journey between Edinburgh and Tweedbank.
The new railway is expected to enable a safer, quicker, timetabled and greener mode of transport to communities along the route.