China's Dongjiakou Port plans to build two additional iron ore terminals that can receive 300,000-ton vessels, a source with direct knowledge of the expansion said.

The port, located in Shandong province, has already begun trial operations at its existing terminal and received government approvals in May.

"We have already received 40-50 smaller carriers, including one 300,000-tonne vessel that was not fully loaded," said the source who requested anonymity.

It was too early to say when the additional facilities would begin operation, he said, adding that one of them was awaiting government approval while the other was still in early planning stages.

The new terminals could potentially handle vessels as large as 388,000-tonnes, the source said.

Dongjiakou Port, along with ports in Majishan and Dalian, is among the few Chinese ports that could be able to receive Brazilian miner Vale's huge dry bulk ships, also known as Valemaxes.

An official with the National Development and Reform Commission, China's planning agency, has said that domestic ports were not yet ready to receive Vale's mega carriers due to a few "small issues" such as a way to safely guide them into the ports.

When asked if the existing Dongjiakou terminal was already able to receive the Valemaxes, the source said there remained operational issues that needed to be resolved.

Dongjiakou Port, which aims to be an international commodities and energy distribution centre, also plans to build two 450,000-tonne oil terminals in the near future, the source said. (Reuters)