A packet processor for a network device includes an incoming port that receives a first packet. The first packet includes a data portion, a control portion and a first outgoing port. A control data processing device receives the control portion from the incoming port while the data portion is stored in memory, and transmits the control portion to the first outgoing port. The first outgoing port transmits a first request for the data portion based on the control portion. A header altering device retrieves the data portion from the memory and strips, modifies, and encapsulates the data portion based on the first request.