Two people escaped unhurt after a “significant” fire on a freight train carrying diesel.

Emergency crews were called to Llangennech, near Llanelli, in South Wales, and nearby homes were evacuated after the blaze was reported at around 11.20pm on Wednesday.

British Transport Police (BTP) said the two employees on board were accounted for without injury, but a number of carriages derailed and caught fire in the incident.

Mid and West Wales Fire Service said three cars were alight.

Officers declared a major incident and knocked on houses in an 800-metre exclusion zone, asking people to move to the nearby Bryn School and Llangennech Community Centre.

People were allowed to return to their homes after 5am on Thursday.

Superintendent Ross Evans, of Dyfed-Powys Police, said: “The safety of people living in the area was our immediate priority and an evacuation zone was put in place to minimise the risk of harm.”

BTP Assistant Chief Constable Sean O’Callaghan said: “This is a significant incident.

“The fire continues and there is still a substantial risk within its immediate vicinity, so our advice remains for people to avoid the area.

“Our officers will be conducting initial inquiries into the incident and are in the process of securing key witness statements and CCTV.”