Mobility,　pollution,　and　other　barriers　against　sustainable　goods　movement　are　pushing　local　administrators　to　seek　innovations　in　urban　transportation　infrastructure.　The　urban　underground　logistics　system　(ULS)　has　been　recognized　as　a　prospective　alternative　to　realize　large-scale　automated　freight　distribution　within　and　around　megacities.　This　paper　proposes　an　integrated　approach　combing　system　dynamics　and　agent-based　modeling　to　evaluate　the　long-term　development　and　operating　status　of　a　city-wide　ULS　project.　The　project　boundaries　regarding　underground　network　expansion,　stakeholders＇　attributes,　and　social-environmental　benefit　metrics　were　structured　as　eight　highly-interacted　agent　modules.　Critical　decision　variables　of　agents　in　terms　of　supply-demand　equilibrium,　investment　plan,　pricing-to-market　and　willingness-to-pay　were　incorporated　into　three　formulized　subsystem　models.　From　empirical　perspective,　the　urban　territory　of　Beijing,　China,　was　taken　as　a　case　to　simulate　the　development　footprints　of　ULS　project　under　different　funding　options　and　market　acceptance　degrees.　Results　show　that　ULS　has　significant　competence　with　respect　to　service　capacity　and　profitability,　while　enabling　billions　of　dollars　of　external　cost-saving　annually.　Moreover,　the　comprehensive　performance　of　ULS　project　regarding　economic　incomes,　benefits,　market　demand,　and　construction　schedule　can　reach　satisfactory　trade-offs　through　adaptively　adjusting　the　funding　policies,　incentives　and　pricing　portfolios　during　project　development.　(C)　2021　China　Science　Publishing　&　Media　Ltd.　Publishing　Services　by　Elsevier　B.V.　on　behalf　of　KeAi　Communications　Co.　Ltd.