BHP Billiton, Rio Tinto along with 11 other coal miners have bid $4.85 billion for the country’s largest coal railroad to take off the Queensland State Government’s intended initial public offering of the assets.

Today, Nick Greiner, Chairman of the Queensland Coal Industry Rail Group, said in a statement that the bid is more than what the state would be capable to attain in an IPO.

An IPO was directed to raise around $3 billion.

The 13 miners together with Xstrata and Peabody Energy might have more benefits to add tracks than a single proprietor, who might aim to revenue by increasing charges on a monopoly benefit.

Mr. Greiner said that they intend to splurge $2.05 billion to enlarge the railroad to cater to demands from Asian steel mills.

Andrew Harrington, an Analyst at Patersons Securities said that the rail group is bidding extra for the track alone than what the Government was expecting to accomplish for the entire system.

He said, “The incentive for the coal miners is to get more of their coal on ships, which means more tracks and cheaper transport. There is little incentive for a privatized vertically integrated enterprise to expand track”.

Mr. Greiner said that Australian Rail Track that handles tracks in three states together with the Hunter Valley coal network in NSW would operate the railroad.