ABSTRACT The ports play an important role in the cargo transportation and international trade. With the evolution of transport modes, the function of port evolves from simply distributing operation of import and export cargoes to part of supply chain which is logistics-embedded. Firstly, this paper illustrates the change of port’s function, pointing out the relationship among ports, cargo transportation and international trade, and explains the position of port in logistics. Following the terrorist attacks on the United States on September 11, 2001, the requirement on security of supply chain has been internationally intensified than ever. What responsibilities should port operators have for running the cargo handling terminal? How should port operators and operation units respond to them? That is the second key point this paper explores. Finally, this paper is going to explore the interaction between ports and logistics operation for demonstrating the importance of logistics development to modern ports.