The fire could be seen right across the north west this morning and thick plumes of smoke have been reported by residents living nearby in Maydown and Strathfoyle.
There are some reports that fire-fighters who have managed to access the site are currently bringing it under control.
The Northern Ireland Fire & Rescue Service have just confirmed to the Derry Journal that three appliances from Crescent Link and two from Northland Road fire stations are in attendance at the moment.
“The fire fighters are currently in attendance at a fire in a building at Foyle Port. The incident is ongoing,” a spokesperson said.
A spokesperson for Foyle Port meanwhile said: “We are aware of an incident that has taken place in one of the sheds on the Foyle Port site and are carrying out all appropriate procedures.
“The emergency services are now at the Port and dealing with the incident.”
Meanwhile police have urged people to avoid the area.
A PSNI spokesperson said: “Motorists are advised that the Port Road in Derry / Londonderry is currently closed due to a large fire.
“Please avoid the area.”