A transport module for constructing an efficient and flexible material handling system are proposed in the paper: an AGV (automated guided vehicle) module loaded a conveyer in which it is possible to hand-over operation between two modules. The operation can solve the deadlock problem among AGVs in the process of material handling. Prototype modules are created and hand-over experiments are made to measure motion characteristics of the modules. Transport simulations are made for a model plant layout by using values from former experiments. The results show the effectiveness of the proposed module from the viewpoint of transport efficiency, especially for cellular-type or process-type plant layouts.