Bids are being lodged and bets hedged to see who will bag the contracts for a $1 billion freight hub in Sydney's west.

The government called for tenders in the Moorebank Intermodal Terminal (IMT) facility, planned to handle container traffic from interstate rail freight and Port Botany. There are further indications that it may be merged with the Sydney Intermodal Terminal Alliance site in a combined mega-hub.

Qube Holdings, chaired by Chris Corrigan, and partner Aurizon appear to be the front runners, according to some reports.

The SIMTA duo already control the similar nearby site, with a Qube spokesperson saying; “We are reviewing the expressions of interest and we are pleased to note that for the first time the Moorebank Intermodal Company has recognised our project in the expressions of interest document and that the process will consider proposals to integrate the projects.”

The bet is backed by Moelis analyst Simon Fitzgerald, who says he believes the government will look for an all-of-precinct development.

“The SIMTA consortium, led by Qube, will be in a prime position to add value to the site,” he said.

The site is currently occupied by the Royal Australian Engineers School of Military Engineering and colloquially known as “the home of the sapper”. Some say that the government-run school does not plan to move for several years, though its website reflects a transition phase.

One source speaking to a News Ltd publication allegedly said; “a terminal can't be built on that site at least until 2018 or 2019 because the Defence Department won't be gone until 2015 and then you have to plan it and the NSW planning processes are slow.”

Expressions of interest are due by February 26.