Police were called to the crash about 4.30am today.
KiwiRail said a vehicle collided with one of its freight trains in Peachgrove Rd.
Two people were taken to Waikato hospital in a serious condition, St John said.
A resident who lives in the road said she woke to a massive bang and her partner was one of the first people at the scene.
"He was just taking instructions from the first police officer on the scene. I think he pulled two people out of the vehicle and performed CPR on one," she said.
Another local described what she heard in the night.
"So I heard, four am, just like an earthquake - BOOM! - then silence. That was it. Tragic."
A neighbour who has lived by the level crossing for 23 years said nothing like this had happened before.
A woman who lived near the scene of the crash said she heard a long drawn-out sound early in the morning, but did not realise what it was.
The resident, who did not want to be named, said the crossing had barrier arms and bells and she could not understand how the crash happened.
She was unsure if the crossing bells sounded at night because of surrounding houses. The woman said the crossing and 50km/h road were usually safe, and she felt for the train driver.
"It's just really a terrible tragedy and really awful for the train driver."
The train was travelling from Mt Maunganui to Hamilton.
KiwiRail said the level crossing where the crash happened was protected with lights and barrier arms.
Manager of freight and rolling stock operations Paul Ashton said the train driver would be given leave and all staff would be offered support and counselling.
The bells, lights and barrier arms at the level crossing were all working, he said.
The barrier arms have been damaged and warning signs were up.
The East Coast Main Trunk Line between Ruakura and Hamilton was briefly closed and reopened shortly after 10am.
The police Serious Crash Unit has been notified.
'Always slow down '
Rail safety charity TrackSAFE said the accident was a "reminder to everyone of the risks at railway level crossings".
"Incidents like these leave lasting trauma," manager Megan Drayton said in a statement.
"Always slow down and be prepared to stop. If the bells and lights are operating, then motorists should always stop. If there are signs at a crossing, then always look both ways and let any train pass before crossing the tracks.
"Trains cannot swerve or stop suddenly if the driver sees someone on the tracks in front of them."
