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Emergency crews raced to the scene, just behind Salthouse Road, Barrow, at about 2.15pm yesterday and St Luke’s Avenue was cordoned off.
A spokeswoman from Cumbria Fire and Rescue Service confirmed that five appliances had been called to the scene.
Andrew Kneale, 41, of Dalton, was with six-year-old daughter Millie when the accident happened.
Mr Kneale said: “I had gone down to check on the fishery near there and I heard all these sirens. There must have been about 15 emergency vehicles at one point.
Barrow MP John Woodcock has called for a full investigation, describing the incident as “unacceptable”. He said: “Whether full or empty, high level waste flasks are designed to withstand incredibly high levels of force but it is obviously completely unacceptable that this derailment has occurred. I am concerned for all those involved but also angry on behalf of my constituents who have taken a very measured approach to nuclear waste material being transported through Furness.
A spokesman for Network Rail said "technical issues" meant the train was still on the tracks between Roose and Barrow and couldn't be removed until tonight.
“The recovery of the train at Barrow is proving extremely challenging due to the location and the ground conditions in the area.
“The flasks were being transported from Barrow and had been shipped to the UK from Japan.”
A spokesman for Network Rail said "technical issues" meant the train was still on the tracks between Roose and Barrow and couldn't be removed until tonight.