Route building is an art and requires a lot of compromises. All versions of Trainz, whether it is TS12 fixed after patches, or even those prior are capable of creating very large routes. I happened to have a route that's over 200 miles long. This has taken me about a decade to get there, but it has also gone through some major renovations along the way.
Anyway back to the topic. You may be able to build very large routes, but you need to be aware too of the resources you are using. Keep in mind that the more assets (objects) you put on your route, the more complex and more resources it will use. Remember that the computer has to draw all these objects, keep track of where they are, and be ready to display them at a moment's notice. Now, if there area scripts involved, this is another thing to watch over too.
There are various techniques out there to create a route as large as mine, if not bigger and still get decent frame rates and performance.
* When creating a forest, there is no need to put trees in over multiple baseboards. Going back a few meters thickly with undergrowth will suffice. If you want to use background trees, you can start limiting their numbers and place them in clusters of 4 or 5.
* Cities don't have to have every street modeled. You can model the streets closest to the tracks, where you will see the action from the train, and use less detailed buildings in the background. Eventually, you can use a row of trees to hide the rest, or perhaps have farmland an open fields dotted with a few buildings, trees, and houses.
* Avoid using numerous splines. Splines are awful frame rate killers due to the way that they are loaded and drawn. Avoid using very long splines and limit their use to telegraph poles and track if you can with streets as needed. Fences should be minimal; the same with walls and hedges, and even grass splines.
* When creating rail yards, don't put in extra long tracks, or a lot of them if you need them. Also, don't load up the yard with lots of wagons. Remember, the wagons are all tracked by the simulator whether they are active or not, and the long tracks are like long splines.
So with these ideas in mind, it is still possible to build a very long route. You want to keep the details closest to the tracks and use small scenes with the details while allowing for big expanses of open fields with patches of woodlands. One of the things you may want to think about in this is what can you see while driving. If you can't see it, don't bother putting it in.
Hope this helps.
John