Transport Scotland has invited bids to build the ВЈ295m rail line connecting Edinburgh to the country's borders.
The 35-mile rail line will run from Edinburgh via Midlothian to Tweedbank in the Scottish Borders.
The railway is expected to reduce carbon emissions by switching travel from road to rail and will also open a travel link from Midlothian and the borders for the first time in more than 40 years.
The contract is expected to be awarded in 2011 and the project is expected to finish in 2014.
The project had been scheduled to finish in 2013.