Some embodiments provide a novel method for forwarding a packet at a first managed interconnection switching element in a managed network of interconnection switching elements. The method receives a packet from a source machine on a first network segment in a first network. The packet identifies a destination machine located on a second network segment in a second, different network. The method removes a context tag that identifies the first network segment. The method uses the identification of the first network segment to determine a logical switching element that connects at least the first and second network segments. The method encapsulates the packet with a logical context identifier that identifies a logical port of the logical switching element. The logical port corresponds to the second network segment. The method transmits the twice-encapsulated packet towards a second managed interconnection switching element at the second network.