Nowadays much efforts for evaluating the productivity of port physical distribution system to meet the rapid change of the port and shipping circumstances has been made continuously all over the world. The major part of these efforts is the improvement of the productivity of cargo handling system. The cargo equipment system as infrastructure in the cargo handling system is organized well in some degrees, but the management system of manpower as upper structure is still remained in an insufficient degree. There is little study, so far, on a systematic research for the management of port labor gang, and even those were mainly depended on rule of thumb. The object of this study is to introduce the method of optimal allocation and assignment for the labor gang in single ship, which was suggested as a first stage in dealing with them generally. The problem of optimal allocation and assignment of the labor gang can be (I) formalized with multi-stage allocation and assignment of the labor gang can be. (II) dealt with two stages in form of hierarchic structure and moreover, (III) The optimal size of labor gang was obtained through dynamic programming from the point of minimizing the summation of labor gang in every stage, (IV) For the problem of optimal assignment, the optimal policy was determined at the point of minimizing the summation of movement between hatches.