In modern railway Automatic Train Protection and Automatic Train Control systems, odometry is a safety relevant on-board subsystem which estimates the instantaneous speed and the travelled distance of the train; a high reliability of the odometry estimate is fundamental, since an error on the train position may lead to a potentially dangerous overestimation of the distance available for braking. To improve the odometry estimate accuracy, data fusion of different inputs coming from a redundant sensor layout may be used. Simplified two-dimensional models of railway vehicles have been usually used for Hardware in the Loop test rig testing of conventional odometry algorithms and of on-board safety relevant subsystems (like the Wheel Slide Protection braking system) in which the train speed is estimated from the measures of the wheel angular speed. Two-dimensional models are not suitable to develop solutions like the inertial type localisation algorithms (using 3D accelerometers and 3D gyroscopes) and the introduction of Global Positioning System (or similar) or the magnetometer. In order to test these algorithms correctly and increase odometry performances, a three-dimensional multibody model of a railway vehicle has been developed, using Matlab-Simulink™, including an efficient contact model which can simulate degraded adhesion conditions (the development and prototyping of odometry algorithms involve the simulation of realistic environmental conditions). In this paper, the authors show how a 3D railway vehicle model, able to simulate the complex interactions arising between different on-board subsystems, can be useful to evaluate the odometry algorithm and safety relevant to on-board subsystem performances.