Network Rail said the train was heading from Ardwick to Carnforth. The line is now closed between between Manchester Piccadilly, Preston and Newton.
The train is a diesel. The smell from the fire is overpowering. Several surrounding streets have now been closed.
More top news
The first half of the new working week looks settled. Mainly dry, winds light and feeling warm in any sunshine
More cloud and higher risk of showers on Sunday, feeling cooler. High pressure in control into next week with many areas fine and dry.
Generally dry and settled. Cloudier with showers on Sunday.