Around 150 passengers were on board when the train derailed near the town of Wallan around 18, local time. The train was on its way to Melbourne from Sydney.
Two people have been confirmed dead, one of them to be the driver, and several injured.
Passenger Rob Jennings tells The Sydney Morning Herald that the people in his wagon were thrown around for over a minute, passing from the train starting to derail until it stopped.
- A few screams. Everyone was just trying to hold on. Some sat in a forward-leaning position and were preparing for something much worse, he says.
Pictures from the accident show how several wagons were turned apart and landed on the side.
It is unclear why the train was derailed but earlier that day the route had been closed due to a rail fault.