Measuring Effectiveness of Metro-Based Underground Logistics System in Sustaining City Logistics Performance During Public Health Emergencies: A Case Study of Shanghai

City logistics performance (CLP) is being increasingly challenged by public health emergencies and relevant mobility restriction policies. This paper introduces a novel urban contactless delivery measure incorporating the metro-based underground logistics system (M-ULS) and “Pandemic Thruport” (P-Thruport) concept to encounter logistics service failure during pandemic outbreaks. This solution is proposed to utilize the redundant public rail transit capacity to move goods efficiently and collectively from the outskirts to in-city customer destinations. To assess the effect of the proposed solution on CLP, two interacting system dynamics models are developed, where supply–demand relationships, logistics operation process, and CLP evaluation indicators (e.g., delivery time delay, costs, infection model, and underground logistics benefits) are comprised. The COVID-19 outbreaks in Shanghai City from March to May 2022, were taken as a case to evaluate the variation of CLP under four different scenarios associated with the dynamic implementation of M-ULS and the pandemic conditions. Results show that the new system is conducive to lowering the infection risks of logistics activities and improving urban freight transport efficiency. Compared with trucking mode, M-ULS’s advantages reflect in cost-saving and service capability. Moreover, the sustainable improvement of CLP can be achieved by balancing the operations of M-ULS and road-based logistics services through incentive policy adjustment.