The intermediate compartment (IC) between the endoplasmic reticulum (ER) and the Golgi apparatus appears to constitute an autonomous organelle composed of spatially and functionally distinct, but interconnected, vacuolar and tubular subdomains. In mammalian cells the IC network is stably anchored at the cell center, communicating directly with the endocytic pathway via a pericentrosomal membrane system (PCMS). This finding suggests that the secretory pathway divides at the level of the IC, which functions as a sorting station both in Golgi-dependent and -independent trafficking. The tubular subdomain of the IC is capable of expansion in accordance with its proposed biosynthetic functions such as cholesterol synthesis.