The lack of practical application and accurate benefit analysis, which are the prerequisites for each other, make it difficult to implement and promote the underground logistics system (ULS), although in theory people always recognize its advantages in sustainable improvement of urban transportation and logistics. This paper attempts to use the system dynamics (SD) method, based on the real-world simulation, to analyze the quantitative relationship between the implementation strategy of ULS and the sustainability of urban transportation and logistics to solve this problem. Beijing city, China, was selected as the empirical background. Four ULS implementation strategies were proposed according to the city’s potential investment in ULS and its demand for ULS network capacity. Meanwhile, four representative indicators were selected to evaluate the simulation results, including the average speed of the road networks in the peak hour, congestion loss, delivery travel time in the peak hour and the PM emissions of the truck. Good fitting index of historical data shows the validity of the model. Simulation results show that ULS, as a supplement to the urban integrated transport system, can significantly improve urban traffic and logistics. This study provides a perspective in the systematic and quantitative analysis of ULS to support the urban sustainable development.

The surging demand for logistics systems brought about by the vigorous development of e-commerce makes urban traffic more and more congested. The need for a sustainable transition in terms of urban transportation infrastructure also encourages the further innovation of logistics systems. The urban underground logistics system (ULS) emerges as a promising alternative for realizing efficient large-scale freight distribution in megacities. However, there are relatively few studies that have explored the factors that determine the uptake of ULSs in practice. This paper thus aims to identify the critical success factors of ULSs throughout project life cycle stages. Firstly, a desktop study and a study using the Delphi method were conducted to extract the critical success factors (CSFs) of ULS projects. Secondly, a questionnaire survey was conducted to collect data on the perceived significance of the selected success factors from ULS professionals. Thirdly, the intergroup comparison of the significance of CSFs and exploratory factory analysis were used to ascertain the critical factors and latent determinants influencing the development of ULS projects. In total, 36 CSFs in the four life cycle stages of ULS projects were finalized. The identified factors represent the seven latent determinants in developing a ULS project, namely, overall feasibility and acceptance of the ULS, prototype system, and business model, competence and resources for ULS construction and operation, station layout and intermodal transportation, government policies and incentives, long-term planning of the underground space and logistics network, and market investigation and forecasting. The research findings of the paper help guide practitioners and policy makers on decisions made during ULS planning and construction and provide a reference performance evaluation framework for ULS projects.