An e-scooter left near the tracks at the Woonona level crossing was clipped by a passing train.
The incident happened late last month as the 11.48pm South Coast train from Central neared Woonona.
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A passenger on the train said they heard the driver sound the horn several times before they heard a bang and felt the impact.
The train continued onto North Wollongong, where the passenger got out and noticed a station attendant inspecting the front of the train.
He told them that the train had hit an e-scooter and that it could have derailed the train.
Transport for NSW has confirmed the incident happened but added the train was not damaged and was able continue on its journey.
A spokesman did offer a general warning of the dangers of leaving something on or near the tracks.
"This is incident is under police investigation so we're unable to confirm specific details," the spokesman said.
"Any instance of a potential collision on a level crossing is concerning and could have far-reaching and possibly devastating consequences.
"Rail safety is everyone's responsibility. Flashing lights, bells and boom gates are there for everyone's safety - do not enter a level crossing if they are activated."
Neuron is the company running the e-scooter trial in Wollongong.
The Mercury understands that the e-scooter had been removed from the geofenced service area along the cycle way and dragged onto the level crossing at Woonona station.
"We are aware of an incident involving one of our e-scooters reported to us ... and are currently assisting the authorities with their enquiries," the spokesperson said.
"Thankfully there have been no injuries and only minimal damage reported."
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