The empty freight train, which was being shunted at Griffith railway yards, overshot its mark at about 9.45am, flattening fences and uprooting trees before coming to a stop in the driveway of a unit block.

The train carved deep grooves into the roadway. Traffic remained blocked on Wakaden Street at 5.30pm yesterday but was expected to reopen last night.

Griffith man Jon McWilliam was first on the scene and said it was “a miracle” no-one was hurt.

“The first thing I heard was this almighty screech and then I heard the sound of trees and fences being pulled up,” Mr McWilliam said.

“I saw the train heading towards the unit and I just started thinking, 'oh no, houses, cars, people'.

“All I can say is that they were very lucky in those units ... they should buy a lottery ticket.”

Witness Allan Verri said he was “completely astonished” by what he saw.

“The train was pushing that much weight that it would have demolished the building had it gone a few metres further,” Mr Verri said.

“You can see it pruned that tree like a grapevine.

“It’s certainly not what you expect to see on Wakaden Street on a Thursday morning.”

The driver, from Patrick Portlink, was unaware he had reversed the train over its mark until he was informed by police about half an hour after the incident.

The driver and his observer both returned negative breath tests.

Police and representatives from Patrick Portlink and Griffith City Council were on hand after the incident.

News of the derailment spread like wildfire around the city, with hundreds of locals stopping to have a look, many taking photos.