From the viewpoint of physical distribution, the port transport process can be regarded as a system which consists of various subsystems such as navigational aids, quay handling, transfer, storage, information If management, and co-ordination with inland transport. The handling productivity of this system is determined by the production level of the least productive subsystem. So, a productivity analysis on the flow of cargoes through each subsystem should be made in order to achieve efficient port operation. The purpose of this paper is to analyze the productivity of each subsystem in Pusan port, and to bring forward problems and finally to draw up plans for their betterment. Analyzed results on the productivity of each subsystem are as follows, i) It is known that the number of tugs with low HP should be increased by a few, the number of tugs with medium HP is appropriate, and the number of tugs with high HP is in excess of that necessary. ii ) In the case of container cargoes, it is found that the transfer and storage systems in BCTOC have the lowest handling capability, with a rate of $115\%$, leading to bottle-necks in the port transport system, while the handling rate of the storage and quay handling systems in general piers is in excess of the inherent capability. iii) In the case of the principal seaborne cargoes passing through general piers, there is found to be a remarkable bottle-neck in the storage system. In the light of these findings, both the extension of storage capability and the extension of handling productivity are urgently required to meet the needs of port users. Therefore, iv) As a short-term plan, it is proposed that many measures such as the reduction of free time, the efficient application of ODCY, etc must be brought in and v) In the long-trun, even though the handling capability will accommodate an additional 960,000 TEU in 1991, the scheduled completion date of the third development plan of Pusan port, insufficiency of handling facilities in the container terminal is still expected and concrete countermeasures will ultimately have to be taken for the port's harmonious operation. In particular, the problem of co-ordination with inland transport and urban traffic should be seriously examined together in the establishment of the Pusan port development. As a method of solving this, vi) It is suggested that Pusan port (North port) should be converted into an exclusive container ternimal and overall distribution systems to the other ports for treating general cargoes must be established. vii) And finally, it is also proposed that the arrival time (cut-off time) of influx cargoes for exports such as general merchandise and steel product should be limited, with a view to securing cargoes suitable for the operational capability of BCTOC.