Railway traffic has increased over the last decade due to its fuel efficiency and the need to reduce emissions. The railway infrastructure performance needs to be measured to allow assets to be managed effectively against set objectives. Various systems are used to collect and store data on traffic, failures, inspections, track quality, etc. However, these systems are often used in an ad hoc manner, partly because of the weaknesses of traditional performance measurement systems. This paper proposes a link and effect model which is focused on the areas of continuous improvement, the key elements of strategic planning and on the underlying factors responsible for the railway performance. The model provides information on the performance of railway systems and components, and how they are linked to each other and to the overall objectives, thereby facilitating proactive decision-making. The model is applied in a case study on the Iron Ore Line, Sweden. The performance of a section of the line is studied in terms of failures, train delays and repair times, and ranked through a risk matrix and composite indicator.