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Secondly - who doesn't turn diesels. When did you ever see one running backwards - not often I bet.
Actually all the time. It is very common to run locals with one engine and they are commonly turns so they would operate out in one direction and back the other. Road power was normally more than 1 unit so they would put a pair of back to back units if required. You don't see many pictures because its not photogenic so people prefer to take pictures when the engine is turned "right".
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I have an F3A - can't run that backwards.
You can, but that isn't that common. The classic example was the PRR used a BP-20 (a six axle sharknose Baldwin streamlined engine) on a local during the day so it operated backwards for part of its trip. I agree that that isn't hat common.
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The B&M send a freight in every day behind an RS-3 - they won't accept it running backwards to Boston, and so on.
Why? Railroads ran one unit trains all the time. The whole purpose of the design of a road switcher was to allow it operate in both directions equally well.
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Doesn't everyone have a yard in the middle and staging at each end? It means that I can run trains to other places rather just round and back.
Not really. I don't. Its also a matter of how you conceive of the arrangement. If you have a loop and put the yard in the middle of one side and the staging in the middle of the other, then you have one town with a short run on either end. If you push the yard to one end of the layout and push the staging on the other side of the loop to the same end, then you have a yard with one short run and one a bit longer run. Sometimes even a slightly longer run can be leveraged into a scenic or operational possibility.
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Sunset is an invented town halfway between Hartford CT and Boston MA (about where Worcester is in reality). It provides a quicker route between the two cities than the normal more northerly one.
So that's about 100 miles and since you say its quicker, then that means its only one crew district long. A crew will get on a SNE train at Hartford and run it to Boston, one crew, and vice versa.
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As such it did well in the 1900-1940s but has run down a bit since. It runs a way freight a day in each direction and the B&M use it as a quick route for one freight a day to Hartford plus a way freight into Sunset and back. The freight traffic is just enough so they only need a small yard. The New Haven runs a once a day each way Budd RDC between Hartford and Boston since the S&NE stopped its own passenger traffic.
The operation part. Caveat is that you can do whatever you want. Its your railroad, you get to choose the back story.
From the perspective of the prototype, there really wouldn't need to be a yard at a town in the middle. The yard would probably be at either end where it would receive the interchange. Based on your description of the operation, I would have assumed that the F3 would be on the through freight because they are horrible as switch or local engines, the RS3 would be on the local because that is exactly what they were designed for a "road switcher" (what the RS in RS3 means) and the SW7 would be in the yard. So how would I get a yard in the middle?
I would take the lead coming out of the yard on the right side and bend it around the blob on the right end, and then go to a switching area behind the staging tracks, forming a branch line. I would make the main and the staging go down 2 inches and the branch go up 2 inches so there is vertical separation between the staging tracks and the town at the end of the branch. Even better would be to make staging go up and the branch go down, but you don't have room to do that. Making the branch go down would let it become a seaport which is visually cooler. and you could make the town a former helper terminal for the grade in either direction, justifying the turntable.
With the branch the operation changes. The through freights, one powered by an RS3 and the other by the F3 operate around the loop, from staging thru the yard to staging, one in each direction. The yard becomes a branchline junction. The thru freights set out and pick up blocks of cars to and from the branch. The SW7 switches up the cars , works the industries around the junction and then runs up the branch as the local, switching industries on the branch. It comes back down the branch switches up the outbound cars which the freights will pick up the next time they pass through. Put a paper mill and cranberry cannery at the end of the branch and then a couple times a year the railroad runs a special up the branch for the employees of the mill and cannery and then the last 2 weeks of every October is "Cranberry Daze" where the RDC runs multiple a trips a day from both Hartford and Boston up to the cranberry festival at the town at the end of the branch. All the engines are doing what they are supposed to be doing, there is a reason for the yard, the operation is consistent and there is opportunity for "extra business".
The turntable. Right now no real need for it in my scenario. I would put in a lumber yard that gets boxcars of lumber that need to be opened from one side only so they have to be turned to put the right side next to the loading dock. Then I would have a once a week or so coal or wood chip train up to the papermill (pulled by the F3) It would head up the branch the loads, back down the branch with the empties, turn the engine and then return to staging facing "forward".
You asked for feedback. Got some.