Swiss Federal Railways (SBB) will invest CHF1bn ($945m) in a rail link between Switzerland and Germany.
SBB signed a memorandum of understanding with Germany's Deutsche Bahn to carry out the plan.
The rail link is expected to be operational by the end of 2014 and is intended to improve services between the countries.
SBB will own 60% of the common subsidiary created by the companies for handling traffic between Switzerland and Germany, according to swissinfo.ch.
The plan is expected to double the number of trains linking Zurich in Switzerland with Munich in Germany, and reduce travel time between the cities by 40min.