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I would humbly suggest that junction for the Engine Terminal be constructed as a wye, to enable access and egress from either direction, and to allow for the turning of locomotive sets:
The river will have to "disappear" before reaching the siding on the left side. That siding is going to service my brewery....
Well, I'm late to the party, but I'd still question the use of space in this room before committing to a particular track arrangement. Aside from all the shelving, the thing that really jumps out at me is the diagonal obstructions formed by the water heater and freezer. (As nice as David's plan looks, there is still a big obstruction in the alcove.) Any chance the freezer could be moved to between the heater & water heater? -Gary
Eliminating the inner loop has been a "yes - no" item for me too; I like ti for the potential to run a small switching consist without invading the mains but from a scenic perspective it's lousy....
I'm not crazy about hidden staging but it's going to have to work. I think the diagram that Skipgear drew is perfect and exactly what I have envisioned.
Since you're relaying all of the original layout track, I thought it might be an opportunity to omit one thing that's bothered me--the inner loop.