There is major disruption on the Metro service as a result and trains travelling between Monument - South Hylton, and Monument - Jarrow have been suspended.
Passengers have been warned to allow extra time for their journeys while ticket acceptance is in place with Go North East and Stagecoach for people to continue their commute.
Nexus, which operates the Tyne and Wear Metro, has confirmed Tyne and Wear Fire and Rescue Service are at the scene.
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A Nexus spokesperson said: “There is ongoing disruption to Metro services south of the Tyne this evening due to a lineside fire in the Pelaw area.
“The Tyne and Wear Fire and Rescue Service are attending and are putting out the fire, which appears to be adjacent to the tracks, possibly in the foliage.
“The incident was reported at around 5.45pm and we have been requested to half Metro trains between Monument and Jarrow and down to South Hylton while this incident gets dealt with.
“Local bus services are accepting Metro tickets. This is on Go North East buses 26, 27 & 56Stagecoach Sunderland 8, 20 and x24
“Customers should keep an eye on our twitter page @My_Metro for updates and allow extra time to travel through the affected area.”