We present a compact and transportable inertial sensor for precision sensing of rotations and accelerations. The sensor consists of a dual Mach-Zehnder-type atom interferometer operated with laser-cooled $^{87}$Rb. Raman processes are employed to coherently manipulate the matter waves. We describe and characterize the experimental apparatus. A method for passing from a compact geometry to an extended interferometer with three independent atom-light interaction zones is proposed and investigated. The extended geometry will enhance the sensitivity by more than two orders of magnitude which is necessary to achieve sensitivities better than $10^{-8} $rad/s/$sqrt{rm Hz}$.
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