"No! We don't listen to fat people!"
-Ivo Hugh to Mr. Railway Man
The Diesel Outpost was built sometime after the events of the first season of Quest 89. It has a shed, some oil derricks and a bridge running through it.
Connor, Ivo Hugh and Gold Leader rested here while looking for 089. They were so concerned for safety, that Gold Leader made a barricade! They were safe, until Mr. Railway Man arrived with the Rouge Trackers. The trackers smahed the barricade and bumped the nearby trucks hard. Gold Leader protected his friends by breaking down the roof of the shed to barricade the front doors as they escaped out the back doors, but this was useless, as the diesels had cannons to blast through the shed. Connor and Ivo Hugh were captured and taken to Diesel Headquarters II as Gold Leader ran off to get help.
- The footage of this location in The Grudge was recorded on a different camera than the rest of the episode.
- The set was later converted into a set for the Rails of Europe movie, but was never used.
- Simillar to the Diesel Supply Yard, this location only appeared in one episode.