In this article, we advance a model for the traction power supply of a medium-capacity railway system along the major Pham Van Dong (PVD) arterial route situated in the northeastern sector of Ho Chi Minh City (HCMC), Vietnam. This study simulates an in-depth analysis of the carrying capacity and feasibility of traction power supply for this scenario based on a safe moving-block system utilizing Communications-based Train Control (CBTC). The research results show that the 750 V DC traction system uses a rigid overhead conductor rail system (ROCS) with distances between traction power stations of up to 6 km with double feeding. The system provides a service frequency of 36 trains per hour per direction, and has a transport capacity of up to 47,520 passengers per hour per direction. The implementation of this solution, as proposed, has the potential to improve traffic flow, reduce congestion, reduce environmental pollution, and provide a complete and modern urban railway network for HCMC. The system could also be implemented in other similar global scenarios. Additionally, this investigation also demonstrates the feasibility of applying the new ROCS to medium-capacity railway systems (MCSs), which have garnered increasing attention in recent years owing to their discernible advantages over extant systems. The outcomes of this study underscore the pragmatic nature of the proposed solution, which orients sustainable and integrated development in the realm of urban rail transport.