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That night the warning lights and arms were activated at Derry Road with out any trains coming as I was heading out. I called the police dispatch who in turn told me they would contact CN Rail to warn them about it. Probably they were down because of all the rain. When I came back about 20 mins later - the lights were off but came back on as a large freight train (4 locomotives wow) was approaching the tracks and stopped right at Derry. An engineer jumped off and stood in the middle of the road until it started to proceed by again, then he jumped back on. I assume this was a precaution to make sure everything was cool with the lights and no one was going to attempt to go through the arms (which you'd have to be pretty stupid with a train crawling to a stop only 20 feet away - kind of hard to miss!)
It was around this time you may have noticed the sound, and while it slowed seemingly normal at Derry I assume one of the railcars near you probably had brakes locking up which is what you probably heard.
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