# Is privatization really more efficient?

**URL:** <https://boards.straightdope.com/t/is-privatization-really-more-efficient/706910>\
**Category:** In My Humble Opinion\
**Created:** [December 11, 2014, 3:20am UTC](https://boards.straightdope.com/t/is-privatization-really-more-efficient/706910 "2014-12-11T03:20:39Z")\
**Posts on this page:** 4\
**Page:** 3

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**Author:** ![eschereal](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/eschereal/32/18939_2.png) [@eschereal](https://boards.straightdope.com/u/eschereal)\
**Post date:** [December 12, 2014, 12:45am UTC](https://boards.straightdope.com/t/is-privatization-really-more-efficient/706910/41 "2014-12-12T00:45:15Z")

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Is Fed Ex the one where if you ship a package from Santa Fe, whether it is going to Reno, Boston or Albuquerque, it goes through Nashville?

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**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\
**Post date:** [December 12, 2014, 1:30am UTC](https://boards.straightdope.com/t/is-privatization-really-more-efficient/706910/42 "2014-12-12T01:30:56Z")

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> [@eschereal](#):
>
> Is Fed Ex the one where if you ship a package from Santa Fe, whether it is going to Reno, Boston or Albuquerque, it goes through Nashville?

That used to be true. But is not necessarily true any more.

What point were you working towards?

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**Author:** ![slash2k](https://avatars.discourse-cdn.com/v4/letter/s/439d5e/32.png) [@slash2k](https://boards.straightdope.com/u/slash2k)\
**Post date:** [December 12, 2014, 1:33am UTC](https://boards.straightdope.com/t/is-privatization-really-more-efficient/706910/43 "2014-12-12T01:33:55Z")

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> [@eschereal](#):
>
> Is Fed Ex the one where if you ship a package from Santa Fe, whether it is going to Reno, Boston or Albuquerque, it goes through Nashville?

It’s [Memphis](http://www.cnet.com/news/at-fedex-sorting-packages-1-5-million-at-a-time/), but yeah, pretty much.

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**Author:** ![eschereal](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/eschereal/32/18939_2.png) [@eschereal](https://boards.straightdope.com/u/eschereal)\
**Post date:** [December 12, 2014, 2:39am UTC](https://boards.straightdope.com/t/is-privatization-really-more-efficient/706910/44 "2014-12-12T02:39:33Z")

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> [@LSLGuy](#):
>
> What point were you working towards?

The efficiency of using the single massive dispatch hub seems to me to be a major reason for the limitations in coverage for Fed Ex. The PO has hundreds of area hubs (based on the first 3 ZIP digits), making it more practical for them to provide finer-grained service. A privatized carrier would incur a significant expense from this, but the PO is not beholden (AFAIK) to shareholders to maximize profits. The insane pension funding demand, as I understand it, is the only solvency threat they face – even with their huge infrastructure requirements, they are doing OK. The right-wing biz-toadies just want to ruin them because of the juicy real estate they have tied up in downtown areas around the country.

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