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The shelf layout idea is a good one. That is what I am building and if you look at my post about the track plan you can see I fit a good amount of switching in there. You could use the space I used for big modern yards as your logging industry. Switchbacks will take up LOTS of room. Even if you use only say, a 15" radius you have to have a very deep layout to have switchbacks facing the front that reach to any height. My maximum grade is 4% but those logging trains could handle steeper then that. Maybe 6%? (I'm not sure really). Anyway I think you have the potential for a great layout. Good luck[:D]
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