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Transport/Location/Transport location are words for defining how to exchange data with your partner. There are several ways to do this. However SFTP, FTP and AS2 are the most used ones.
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You should clarify the channels for receiving and for sending documents with your partner.
A partner can have different locations to deliver to. These locations are set up under Partner - Locations.
This is described in Link User Guide Locations .
The different locations are then available when creating a new distribution under the menu Distributions, so when setting up the distribution the correct location for this specific distribution can be set up (for example order confirmations are sent via FTP, but invoices are sent via Peppol).
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The transport is set up different places in Link depending of the type of transport - or if the transport is to or from Link. Where to set it up is described in the subsections to this one.