I've run this as quick as possible, but I was kept at red light on the line opposite the caboose. The northbound train is somewhere between Tranmel and Nora, and there's Allen Storage ahead, where there's plenty of length to go past each other. This is definitely a bug in how the dispatch handles this red light: there is no train in the block ahead, unless the block is from Caney all the way to Tranmel. What's the solution here? Playing TSW2 on XSX.
I think I got it this time. I raced to Caney, and beat the northbound. Looks like I will be allowed to get to Allen before them, and will wait there for the pass.