Conventional vertical passenger transportation is performed by lifts. Conventional traction-drive electrical lifts use ropes to transfer the rotational motion of an electrical motor into a vertical motion of the cabin. The vertical passenger transportation system discussed in this paper does not use any ropes, the motor directly provides a driving force, which moves the cabin. This new propulsion is realized through an electrical linear motor. The use of the linear motor requires a new design of the passenger transportation system (PTS), which includes reducing the weight of the car through lightweight construction. The reduced stiffness of the lightweight design renders the construction more vulnerable to vibrations. In order to improve ride quality of the transportation system it is necessary to develop new concepts to damp the vibrations. One way to increase stiffness characteristics of the system is to introduce active damping components to be used alongside passive damping components. It is essential to derive a dynamic model of the system in order to design and also later control these damping components in the best possible way. This paper describes the fundamental steps undertaken to derive a dynamic model for designing and controlling active damping components for the new type of vertical PTS. The model is derived as a Multi-Body System (MBS), where the connections between the bodies are modelled as spring damper elements. The derivation of the MBS is demonstrated on a transportation system, consisting of three main components: a sledge, holding the rotor of the linear motor; a mounting frame, which is used to provide support for the cabin; and the actual cabin. The modelling of the propulsion system, thus the electrical part of the PTS, will not be the focus of this work