Function	Overview
Processing	Operations on the goods. Includes sorting, packaging, testing, assembling.
Distribution	Operations on the cargo. Consolidation, deconsolidation, transloading or cross-docking. Assembling LTL shipments.
Customs clearance	Releasing and/or inspecting inbound cargo. Assumed by a national customs authority.
Foreign trade zone	Imported and domestic goods considered to be outside of the customs territory. Requires bounded transport and bounded warehousing.
Container depot	Handle containers (leased or carrier owned). Transfer custody of containers between shippers. Storing and servicing/repairing containers.

Source: adapted from M. Rahimi (2008), A. Asef-Vaziri and R. Harrison (2008) Integrating Inland Ports into the Intermodal Goods Movement System for Ports of Los Angeles and Long Beach, Metrans Transportation Center, Project 07-01, http://www.metrans.org/research/final/07-01-Final-Report.pdf

Added Value Functions Performed Around Freight Terminals

There are two major types of added value related to freight distribution. The first involves performing an activity that improves the efficiency of freight distribution. Added value thus results in benefits that are carried to the shippers or theirs customers, notably in terms of cheaper products delivered in a reliable and flexible way. The second is extracting a form of rent from the existing flows, notably through tolls and taxes. Added value results in financial gains for various levels of government, which can be used to fund infrastructure projects and improve competitiveness. There is however a risk of a rent seeking behavior where freight activities are targeted strictly in terms of a source of revenue. The "added value" they generate for the rent seekers thus comes at the expense of the productivity of the supply chain.

Among the functions that provide added value for freight:

• Processing. An array of transformations performed on the goods being carried as they are transiting. They can include packaging, assembly or testing. The location of these activities depend on the type of product and the market.
• Distribution. An array of operations performed on the cargo so that it can be distributed more efficiently. Consolidation and deconsolidation are common operations, with transloading and cross-docking being aimed at changing the load unit.
• Customs clearance. Capacity to ensure that the inbound cargo is compliant to the national rules and regulation. Correspond to official port of entry where cargo can enter or exit a country.
• Foreign trade zone. A sanctioned site where foreign and domestic goods are considered to be outside of the customs territory. It becomes possible to use this status to perform activities in a manner less subject to duties and taxation.
• Container depot. A facility where containers are stored and made available to the maritime shipping and/or the inland distribution market.