Unlike countries that have direct access to the sea, landlocked countries are being affected by different constraints to trade at the global scope. The lack of territorial access to the sea, remoteness and isolation from world markets and high transit costs continue to impose serious constraints on the overall socio-economic development of landlocked developing countries including their trade competitiveness. Hence, in order to trade with the rest of the world, it must transship goods through one or more transit countries to reach the sea). So using inland/dry ports are the basic option land locked developing countries (LLDCs) have to trade globally and prosper its’ economy by increasing the competitiveness of their exports. Hence these inland ports need enough resources to operate. The main objective of this study was to analyze the effect of port resources on port operational performance and to see the mediating role of port sustainability practices at Modjo port and terminal operation from port resource based view (RBV) perspective. To address this issue, this study adopted a twophase research design which incorporates quantitative and qualitative phase using sequential explanatory design. At first quantitative phase, to evaluate the effects of port resources on port operational performance and to see the mediating role of sustainability practices, first hand quantitative data were collected using standardized questionnaire from 209 respondents from Modjo port and terminal. At the second face to validate the statistical results interview and document review were taken place. Simple random sampling and purposive sampling were used to select respondents. The quantitative data was analyzed by SEM in AMOS 23 and qualitative part was analyzed using thematic analysis. Finally the result revealed that these port resources have direct positive effects on port operational performance with human capital holding the highest effect. The result of mediating effect shows that port sustainability practices partially mediates the relationship between port resources and port operational performance. Based on the analysis it is been concluded that Modjo port and terminal needs additional port resources to handle container cargoes efficiently and improve export competitiveness of Ethiopian products. And lastly, based on all variables under investigation brief recommendations were made.