I'm just thinking out loud here, but it seems to me that the problem for which you are seeking a fix is a combination of train length, proximity of lumber yard switch location to the passing siding entrance/exit switch, and, perhaps the fact that the passing siding does not parallel the main line better, making a lesser use of available real estate. Wouldn't a simpler (and cheaper) solution be to just put both #5 switches back-to-back (one facing point and one trailing point) in the straight section of your passing siding? Then you would have 3 curves heading down/up the right hand side (mainline, passing siding and lumber "branch") with about an equal amount of space between the industry switches and the passing siding switches. I can see that fitting 2 #5 switches on the short side of your plan might be a problem, but as Tom Tee suggested, they can be cut quite a bit and just might fit then.
Chuck
