Homegrown rival may try to block contract, arguing it had superior bid
Massachusetts is moving forward with a major upgrade of its roadside service plazas, but a local fuel-supply company may challenge the state’s plans.
Last month, the Massachusetts Department of Transportation (MassDOT) awarded a contract to Dublin-based Applegreen to renovate, rebuild, and manage 18 travel plazas across the state. The 35-year lease will begin on January 1, with Applegreen planning $750 million in renovations in exchange for a share of revenue from the plazas.
Applegreen, which operates around 80 roadside plazas in the Northeast and Midwest, said it will modernize Massachusetts’ plazas with customer-focused designs. The company plans to bring in new food and beverage brands, including Shake Shack, Pret A Manger, and Popeyes, and install approximately 780 electric vehicle charging stations.
However, Global Partners, a Massachusetts-based competitor that also submitted a bid, may try to block Applegreen’s contract. Global Partners argued that its proposal offered more value, including $650 million in upgrades and $1.5 billion in guaranteed rent payments from plaza tenants. “This fight for Massachusetts is not over,” the company said, urging MassDOT to weigh the risks before finalizing the lease.
MassDOT selected Applegreen because it offered “the best experience,” would start and finish faster, and had the “only plan to transform all 18 plazas for the next 35 years,” said Monica Tibbits-Nutt, Massachusetts’ transportation secretary. A MassDOT spokesperson declined to comment on Global Partners’ objection.
According to S&P Global Ratings, Applegreen benefits from long-term contracts and stable cash flow. Regulatory restrictions and limited new sites create high barriers for competitors, reducing price competition in the markets where the company operates.
Applegreen plans to demolish and rebuild nine of the 18 plazas and renovate the remainder, with the project expected to be completed within three years of the start of construction. Construction dates have not yet been set.
The Massachusetts Turnpike (I-90) hosts 11 of the state’s plazas, with the remainder on I-95 and other highways. Many current plazas, some dating back to the 1950s, include McDonald’s, Starbucks, gas stations, restrooms, dog walking areas, and kiosks for E-ZPass purchases.