Footage of the incident in the city of Cameron, in Milam County, showed thick black smoke streaming across the sky.
Nearby homes had to be evacuated and at least one property was destroyed by fire, police said.
The vehicle's driver and the people on board the train escaped unharmed and no injuries have been reported.
"Luckily, everybody seems to be OK," Milam County Sheriff Chris White said on Tuesday, telling reporters that there was "no more threat at this point" and that the focus was "to put the fire out and clean the mess up".