The layout's main train would be the local that switched everything. It would enter the layout from the bottom right and make a few laps around before arriving at the runaround. From there it would work the first two industries. After working them it would prepare to work the top half of the layout. Some cars would have to be shoved due to the lack of a runaround, while the rest would be pulled. I'm not sure if the tail track of the switchback will serve anything or not yet, but if so cars would have to be pulled before crossing the street then it would place inbound cars on the tail track. After switching the top half it the local would have to run caboose first to the runaround, then prepare the train to head back to Sevier Yard. After that it would make a few more laps before arriving at Sevier.
There are a few ways to mix things up with the local. Instead of basing it out of Sevier Yard, it could work out of City Yard or maybe Coster and back out of staging and have to work the opposite way it would out of Sevier. Having to clear the main and work around superior trains would be another way.
Transfer and interchange runs would run between the yards and may make a pick up or setout.
The K&O also had multiple freights a day, as well as coal trains from Jellicho to Sevier or maybe some from Middlesboro heading West instead of to Sevier. Passenger trains also ran too, so I have an excuse to run passenger trains despite to smaller radius. So the there is a lot of potential for roundy round running.
Since the layout would primarily be set in 1957, so I can run FT's. Because of Knoxville's location on the Southern all kinds of motive power could be seen. Fairbanks Morse came in off the CNO&TP, ALCO's could come up from Georgia or the Carolina's, and EMD was all over the place.