Around 16 wagons of the train were derailed but there was no casualty, it said.
The goods train was on way to Haibargaon in Assam from Gangavaram port in Visakhapatnam.
Following the derailment Railways cancelled and diverted several trains in the ECoR zone.
All up and down trains have been diverted via Naraj and Kapilas Road bypassing Cuttack, an official release said adding that trains will run on an alternate route via Barang/Kapilas Road.
It said Bhadrak-Bhubaneswar passenger, Bhubaneswar -Berhampur passenger, Berhampur-Bhubaneswar passenger, Cuttack-Bhadrak passenger, Bhadrak-Cuttack passenger trains have been cancelled.
Railways has arranged bus services for Rajdhani Express passengers boarding at Cuttack to take them to Kapilas Road station. The train will have adequate stoppage time at both Naraj and Kapilas Road.
Khurda divisional railway manager and senior Railways officials have reached the spot and are making efforts to clear the derailed wagons, sources said.
On September 3, three wagons of a cement-laden goods train had derailed near Sikharpur level crossing on its way to Cuttack from Jharsuguda.
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