The concession to construct the Arth-Rigi Railway was ceded, in 1873, to the International Company for Mountain Railways in Aarau, a company founded by Riggenbach and this company carried out the railway project as general contractor at a cost of CHF 4.2 million and also supplied five of the six steam locomotives needed to operate it. Construction of the first section, that from Arth-am-See, a station by Lake Zug, to Oberarth commenced in 1873 and once the position of the railway station had been agreed with the main line company, in 1874, construction work on the second section began, the Arth-Rigi Railway becoming operational on 4 June 1875. The line offered only summertime services until 1884 when year-round operation commenced.