DEFINITION of 'Terminal Elevator'
A large pulley system, typically found at distribution centers, that is used to transfer large amounts of grain to trucks, rail cars, barges and ships, for transport. The terminal elevator is typically located in areas that have the greatest accumulation of the particular agricultural product, in order to transfer the commodity to one of its processors, such as flour mills, breweries and ethanol or alcohol distilleries.
BREAKING DOWN 'Terminal Elevator'
Several types of grain elevators exist and each has its own duty. Primary electors receive grain from producers for storage, forwarding or a combination of both. Process elevators receive and store grain for direct manufacturing or processing. Transfer elevators transfer grain that has been inspected and weighed. Terminal elevators receive grain after it has been inspected and weighed; then the grain is cleaned, stored and/or treated before being transferred.