This paper presents a controller design for position and sway control of nonlinear gantry crane system. Two-dimensional crane system is modelled by using MSC ADAMS. A realistic model is obtained since there is no simplification and linearization on the model. All mass and inertia properties of system components were taken into consideration as were in reality. The hoisting cable was treated as elastic and the first six modes are used in calculations. PD controllers are designed in MATLAB/Simulink for trolley position regulation and sway control of crane system. Performance of the proposed control scheme is tested for different inputs. Simulation results are given for evaluation and discussion.