This thesis discusses the benefits of using the powerline communication (PLC) as the technology to transmit the network packets instead of using the wireless communication system, such as cell phones, in an electrical railway system. An electrical railway system model with the data transmission using the powerline communication with mobile contacts in the power supply system is built. A track-powered model train module is used as the carrier of the mobile contact, which travels along the path of the power line. With this model, the simulation of the powerline communication applied to the electrical railway system, such as rapid transit system and high speed railways, is conducted, so are the measurements of data transmission and the performance evaluation under various speeds. In the end, the possible problems with the powerline communication being applied to the real world electrical railway systems are presented.