It is important to know the cargo flow when we predict the cargo demand of estimate the development impacts. The cargo flow is devided into two categories. They are the flow from the waterfront area to the first destination and the flow after that. The subjects of this report are as follows:
　1) A research is carried out on the actual condition of the first cargo flow, and the flow condition after the first flow estimated from the data of the Arterial Cargo Flow Research in Japan. The cargo flow model that denotes all the flow of the cargo is built on the basis of Absorbing Markov Chains.
　2) The setting method of the hinterland is based on the cargo flow model is proposed.
　The research on the actual condition was carried out at The Port of Shimizu and The Port of Naha and their hinter district. As the result of it, it was proved that the proposed model was useful one on the actual port planning.