"Why did the train have to wait until 2:00 at Osier that day - was there a westbound out somewhere?"
No, the orders were just for fun. Had they been real, the purpose of a "wait order" was to let opposing extras know approximately when this train would be at a certain point, so that they could advance against it. If the conductor of a westbound extra knew that the eastbound extra would not pass Osier before 2:00pm, he could gauge where he should take siding for a meet, and perhaps put more miles behind him before doing so.
JAC