"If you're not a local, you don't know to check for trains," he said.
A woman who lived near the crossing said she was "just in shock".
She said her neighbour saw the crash happen, with the car being thrown into the warning lights.
Pongakawa School principal Craig Haggo confirmed none of his students, staff or their immediate families were connected to the crash.
Haggo said while he did not know all the circumstances of the crash, local residents had for been lobbying for barrier arms to be installed at this crossing.
"Any loss of life is tragic and someone's family is going through a lot of pain and hurt right now, and our thoughts and prayers are with them," Haggo said.
He said of those five people, four were initially trapped - two dead and two in a critical condition.
A local witness said a helicopter had landed at the scene and the road was blocked off.
A St John spokeswoman said two helicopters were initially sent but one was turned back.
Three ambulances and one rapid response unit were also at the scene.
UPDATE 9:10AM A section of SH2 in Pongakawa is CLOSED between Maniatutu Rd and Pongakawa Station Rd due to a serious crash. Follow the detour & allow addition time for travel in the area. The detour is suitable for heavy vehicles. ^MF https://t.co/lnh58tqL7v
— Waka Kotahi NZTA Waikato/BoP (@WakaKotahiWaiBP) June 18, 2019
Warning signs were displayed on the Tauranga Eastern Link informing motorists of the closure of State Highway 2 at Pongakawa due to the accident.
A reporter at the scene confirmed there was a police diversion at the intersection of Te Puke highway and Maniatutu Rd and another at the intersection of Pongakawa School Rd and Old Coach Rd.
Western Bay of Plenty Mayor Garry Webber said it was a tragedy for the families.
"On top of what happened on the Kaimais [on Monday] - this is not a record I am proud to be a part of."
He said the council's staff were looking into the circumstances of the intersection.
He said the first priority today was the families, but the next priority would be to look into what happened and "what can be done to prevent it from happening again".
The Bay of Plenty Times has sought comment from the council about any lobbying from residents for barrier arms at the crossing.