A a 39-year-old Peak Hill man was lucky to escape serious injury when the grader he was driving across railway lines was hit by the train at 4.50pm.

The accident happened 5km east of Bogan Gate. 

Rural Fire Service, Fire and Rescue, Police and Ambulance all attended the crash.

The driver of the grader was treated by paramedics at the scene before being transported to Parkes Hospital.  He received injuries to his head and ribs. 

The 42-year-old Parkes man driving the train was uninjured.

The engine, en route from Bogan Gate to Parkes, was pulling 20 wagons of wheat weighing 76 tonnes each when the driver of the grader attempted to cross tracks at a railway crossing.

As the train rounded a left hand bend, the driver sighted the grader ahead.

He applied the emergency break but was unable to avoid a collision with the 2015 model yellow Caterpillar valued at $250,000.

During the impact the engine derailed causing damage to the track. Both the front of the engine and the grader suffered extensive damage. 

Emergency crews from Bogan Gate, Gunningbland and Forbes Fire and Rescue assessed the area and dealt with the diesel spilt from the grader.

Rail corridor management assessed the locomotive derailment and damage to the rail lines, and set recovery operations in place to open the east-west line to other trains.

Police are conducting further inquiries.