This paper concerns the effective management of cargo port core business processes in a competitive environment including the most dangerous strategic risks. It is proposed to investigate the problem using concepts and methods of total quality management and balanced scorecard concept with their possible generalization and implementation through simulation. A simulation model with a formal description of cargo port management under risks is developed. The paper presents the detailed formal description of cargo port organization structure, its strategic aims, performance evaluation, operational risks, technical equipment and logistics. Also, basic restrictions and limitations of the simulation model are elaborated. They include restrictions of organization structure parameters and strategic aim parameters, restrictions of risk and performance evaluation parameters, limitations of cargo port own resources, weather restrictions, and port storage capacity limitations.