With the rapid development of emerging cities in China, policy makers are faced with the challenges involved in devising strategies for providing transportation systems to keep pace with development. These challenges are associated with the interactive effects among a number of sophisticated factors involved in transportation systems. This paper presents a system dynamics simulation approach to analyze and select transportation development strategies in order to achieve good sustainability performance once they are implemented. The simulation approach consists of three modules: a socio-economic module, a demand module, and a supply module. The approach is validated through applying empirical data collected from the Shenzhen statistical bulletins. Three types of transport development strategies are selected for the city and examined for their applicability and effects through simulation. The strategies are helpful for reducing decision-making mistakes and achieving the goal of sustainable urban development in most emerging cities.