This paper considers the applicability of simulation tools in the development of lean ports and lean ports networks. To achieve its objective the paper analyses how container terminal operations work, gives an introduction to simulation, and provides an insight how simulation has been used in a port environment. The focus on a container terminal can be explained by the need to optimise resources, by the capability of a terminal to achieve very fast cargo handling rates, and by the simplification of intermodal transfer. The use of simulation tools has been of growing importance in port activities, especially when these are limited by physical constraints. This paper describes port industry operations, simulation, and assessment of the impact of simulation on the development of lean ports and lean ports networks. Maritime Economics & Logistics (2005) 7, 262–280. doi:10.1057/palgrave.mel.9100137