With the expansion of Chinese cities, the urban population sharply increases and urban traffic congestion is becoming more and more serious, causing the efficiency decline and cost increase of urban logistics, which greatly influenced the healthy development of the city logistics. This paper draws lessons from the ideas of the developed countries to solve the problem of urban logistics by means of underground logistics, and puts forward the method of constructing the underground logistics

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... by using the new Public-Private Partnership (PPP) mode. Based on this, the paper includes three aspects. First, analyze the exiting researches of capital and risk assumptions in urban underground logistics construction. Then combining with risk preference game model and PPP mode of highway project operational cost model, quantify the bi-level programming model, so that the proportion of project investment and risk can be rationalized. Finally, the plant growth simulation algorithm was used to analyze an actual case. The optimal investment and risk proportions were calculated through the model, and the government's public finance expenditure was the least and the private department's net profit was the largest.