Are those plugs, etc to patch the leak?

If they are, I think I would build a smaller switching layout that would be portable and could set out away from the wall.  You could play around with switching out industries until you have had enough rain to be certain that the leaks are repaired.

I would then frame the walls with blue wood (treated for moisture, mildew, and mold resistant) install a vapor barrier and insulation.  Run any electrical wiring that you want to add and then drywall it.  Use your switching section as part of your new railroad.

Least of worries

If you own this home you may want to contact a professional to take a look at your foundation before starting a railroad or anything else in the basement for that matter. The holes and crack repair look eerily similar to a bowing wall / foundation repair job I saw a long time ago at an acquaintance's house.

If you are renting then a switching layout away from the wall here you come!

Well to start off..

I rent right now.  There was a prior patch job done before we moved in.  I am not sure what the things sticking out are, all I know is that the guy is done and that is it...I could always call the owner back as he is also a train guy.  I can move the layout a bit to keep it away from those areas-or I can perhaps try to get it in  between the white plugs since I am using 3" strips for framing.  Here is a copy of the layout I was going to build...I hope I do not have to go back to the drawing board...  The other idea is to shorten it on the X & Y axsis by 5"

just checked

The plugs are full with sealant that inturns fills the cracks that were repaired....The layout above will still work, I will have to go with a height 46" and bring it out a bit from the wall-it only affects really one part of the layout and that is on the left side past the stairs...the other wall-the layout will be above them

Basement concerns...

Looks like a standard repair, but I don't know for sure since we don't inspect via pictures, lol.

I also realize you've resolved this issue, however since others may stumble across this thread in searches I thought it best to add some comments that may help you as well.

Cracked chipped inner walls of basements are nothing new, but it's best to be inspected before making a determination and if you are buying a home and don't get the warm fuzzy from the inspector, get a second opinion.  The procedure is pretty simple remove a trapazoidial cavity where the longer edge of the trapazoid is bottom of the cavity in the concrete.  In most cases this would be the outside surface of the cavity outside as in its farther from the interior of the home.  The opening of the cavity is smaller.  This cavity is then filled with a plug of apropriate material, I generally use that found in tubes similar to caulk.  Remember size of the cavity and the material need to match, every material has it's limitations.  A professional can advise further for each situation.

The intent of the trapazoidal plug is that exterior water pressure doesn't force the plug out and into the home.  Like pushing a cork into the wine bottle vs pulling it out so to speak. 

There are other repairs wall anchors, etc. that you may come across and depending on the situation maybe exceptable.  Again a professional is worth the cost as foundations are exactly that the foundation of the home, bad foundation = bad home.  Good foundation = potential for a good home.

Another comment is in regards to finishing a basement.  Follow local codes or the IRC, local is governing in most cases.  It's best to use treated lumber for wood against and exterior wall.  Or use a water proof memberane designed for the application.  I also prefer to add a full wall against the concrete wall, IE 2x4.  In most cases this will allow plumbing, electrical and even ductwork to be placed within the basement where you want rather than where it fits.  In northern climates insulation can be added.  To me this is essential for the finished basement quality.

I've quoted jobs for furing strips half walls (in daylight basements) and full walls and the cost is negligable between them, particularly with the benifits of a full wall. 

I also like to avoid concrete anchors on block or basemtns that are already cracking due to stress.

Kinda long winded but I felt the information should be presented.  Again your mileage may vary and every situation is different.

Cheers

Thank you for the info

Thanks Jeremy for the info.  I would more than love to do the wall up, but because I rent and the rule is that I have to get permission to do any thing like drywall in the basement, it will be easier for me to move ahead and work around the plugs.  Now like I had mentioned I did measure height of the layout and I am now going with 46" which is going to complicate another issue with the stair this is to avoid the plugs on the one wall, and be in between on another.  The other plug job used copper piping with caps and bent towards the wall-.  The backdrop where the Hartman spur will be, I will have to figure something out do the the plugs...so we shall see

Thank you for the info

Thanks Jeremy for the info.  I would more than love to do the wall up, but because I rent and the rule is that I have to get permission to do any thing like drywall in the basement, it will be easier for me to move ahead and work around the plugs.  Now like I had mentioned I did measure height of the layout and I am now going with 46" which is going to complicate another issue with the stair this is to avoid the plugs on the one wall, and be in between on another.  The other plug job used copper piping with caps and bent towards the wall-.  The backdrop where the Hartman spur will be, I will have to figure something out do the the plugs...so we shall see