The construction of the Wendelstein Railway was the vision of privy councillor (Geheimer Kommerzienrat), Dr. h.c. Otto von Steinbeis, an industrialist, who was involved in forestry and agriculture in the alpine foreland as well as logging in Bosnia on a grand scale and built, in parallel with that, an extensive light railway (Kleinbahn) network. In 1908 he published his plans and on 4 February 1910 Prince-Regent Luitpold signed the concession deed for the construction of the Wendelstein Rack Railway.