SUMMARYIn this paper, we study an important problem that arises with the fast development of public transportation systems: when a large number of bus lines share the same bus stop, a long queue of buses often forms when they wait to get into the stop in rush hours. This causes a significant increase of bus delay and a notable drop of traffic capacity near the bus stop. Various measures had been proposed to relieve the congestions near bus stops. However, all of them require considerable financial budgets and construction time costs. In this paper, with the concept of berth assignment redesign, a simulation‐based heuristic algorithm is proposed to make full use of exiting bus berths. In this study, a trustable simulation platform is designed, and the major influencing factors for bus stop operations are considered. The concept of risk control is also introduced to better evaluate the performance of different berth arrangement plans and makes an appropriate trade‐off between the system's efficiency and stability. Finally, a heuristic algorithm is proposed to find a sub‐optimal berth assignment plan. Tests on a typical bus stop show that this algorithm is efficient and fast. The sub‐optimal berth assignment plan obtained by this algorithm could make remarkable improvements to an actual bus stop. Copyright © 2013 John Wiley & Sons, Ltd.