An automated train carrying 16 carriages of cement was travelling about 50 kilometres per hour when it derailed in Devonport.
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The freight train derailed about 9.10am on Formby Road, opposite the post office, about 50 metres from the Harbour Master Cafe.
A woman in her 20s received cuts and abrasions to her head after the freight train hit a fence and the fencing material struck her.
A man in his 40s has a suspected broken elbow and cuts and abrasions.
Both people were taken to the North West Regional Hospital in stable conditions.
At 9am, TasRail alerted police about a freight train that was anticipated to derail in the Devonport wharf area.
Inspector Stewart Wilkinson, who was driving next to the train, said the response was very effective because if it had continued it could have been far more serious.
“Our members were on the scene immediately and provided first aid to the people,” Inspector Wilkinson said.
Inspector Wilkinson praised the efforts of TasRail staff, who worked to ensure the derailment was conducted as safely as possible.
“We deployed all our resources, every police officer we had available we deployed.
“Every vehicle we had available we deployed … it was all hands on deck for that period of time.”
TasRail chief executive Steven Dietrich said staff followed all safety procedures to bring the runaway freight train to a safe stop.
“All our safety procedures and controls were enacted to ensure that we brought this particular incident and the train to a safe halt protecting members of the public and public property,” Mr Deitrich said.
TasRail chief executive said he was unable to comment on whether the train was out-of-control until further investigation.
“But based on discussions between the expertise train control staff at TasRail, local TasRail staff here in Devonport and the emergency services and police were able to determine the best point to bring the train to a safe halt.”
The investigation into the derailment will be jointly conducted by TasRail and the National Transport Authority.
Formby Road between Best and Stewart streets was expected to remain closed on Saturday while an investigation and removal of the derailed freight train is carried out.