Glasgow Central is to remain closed for at least two days after a building next door to Scotland’s busiest railway station collapsed during a large fire.

National Rail said the station would be closed on Monday and was likely to remain closed on Tuesday after the fire, believed to have started in a vape shop in Union Street on Sunday afternoon.

The blaze gutted the mid-Victorian Forsyth building that surrounds one corner of the station in Glasgow city centre, destroying shops and businesses including a well-known fish and chip shop, the Blue Lagoon, a salon and a cafe.

Thick fire hoses snaked along Gordon Street and down Hope Street on Monday morning as two fire appliances continued to hose down the interior of the smoking building from high aerial lift platforms, aided by a light drizzle.

The gutted interior of the B-listed structure was clearly visible behind its blackened facade. Thick smoke continued to billow from the ruins, passing across adjoining streets filled with police cars and fire engines.

Streets all around the site have been cordoned off by police, some of whom wore face masks against the smoke, directing commuters and office workers unable to reach their destinations.

There was no significant damage to the station but Network Rail said it would remain closed all day while the fire was being dealt with, as would surrounding streets, causing major disruption to transport services and commuters.

Paul Sweeney, a Scottish Labour MSP and a campaigner for better oversight of Glasgow’s architectural heritage, urged the fire service and the authorities to weigh up tougher inspections and regulations of vape shops.

After the fire began, witnesses reported hearing explosions inside the building, believed to have been caused by the lithium batteries used by some vape devices that were stored onsite, with flames seen shooting from the B-listed structure. By late evening on Sunday, the fire had torn through much of the block, causing its dome to collapse.

Sweeney said the fire had revealed a “massive blind spot in our regulation”, adding: “I watched the footage of that fire taking hold of the shop unit with increasing fury. How could a vape shop destroy 175 years of Glasgow’s heritage and numerous small businesses in a matter of 12 hours, and also disrupt the busiest railway station in Scotland for an indeterminate period? It’s just extraordinary.

“It raises questions about the vulnerability of historic buildings to such lithium fires. When this building dates to 1851, it’s not been designed with modern fire protection standards. Why on earth are we permitting these highly risky retail activities to take place in extremely vulnerable buildings adjacent to critical infrastructure?”

One of the onlookers was a commercial estate agent involved in selling one of the properties behind the police cordon. Mark Jackson said numerous businesses in the area would be affected.

“I do think this should lead to an increase in stipulation on vape shops. We see lots of them popping up and they are stacking thousands of pounds worth of stock that is not regulated,” he said. “It’s crazy what happened. We’ve seen fires but not to this extent.”

A spokesperson for Network Rail said: “The station will remain closed today and likely tomorrow. Timescales for reopening will only be confirmed once we are able to safely gain access and carry out the necessary checks.”

They added: “All services to and from Glasgow Central are currently suspended, and passengers should continue to follow alternative travel arrangements as advised by their train operators.”

Network Rail said west coast intercity services due to terminate at Glasgow Central would run instead to Preston, Carlisle or Motherwell, with travellers helped to find alternative train connections northwards. TransPennine Express said trains between Edinburgh and Newcastle/Manchester airport would be subject to delays and cancellations in both directions.

The wider disruption also affected the closing night of the Glasgow film festival. A party to celebrate the closing film, the directorial debut by the Glasgow-born actor James McAvoy, was due to be held in the Central hotel inside the station. The gala event was moved to Sauchiehall Street after the fire led to the closure of the station and hotel.

The Scottish fire and rescue service said that at the fire’s height, it had 18 appliances and specialist vehicles at the scene.

John Swinney, Scotland’s first minister, said on Sunday: “I am deeply concerned about the fire near Glasgow Central station tonight and very grateful to all of the emergency services who are responding. Please continue to follow travel guidance, avoid the area and stay safe.”