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The grout looks great, but it is hard as stone, so there is no getting it back up if you need to change something.
What is that ballast?
The ballast used on the old BYR which is now in @chicken45 possession is Smith and Sons Penn Ohio Blend Grade 50. The S.
@sizemore one of the sidings has some of this going on. What is this?
Magic Fairy Dust.Honestly its most likely some crystallization of the white glue or substrates from the Highball ballast used there. I wonder if where you're keeping the layout is humid (like below ground basements) which would make sense. I would hit it lightly with a clean/dry toothbrush and see if that cleans it up. If that doesn't work wet it down and very gently hit it with the toothbrush again before the white glue unsets. The S.