His Blue Star Line still has only a memorandum of understanding with CSC Jinling to build the replica of the ill-fated liner that sank in 1912 after hitting an iceberg.

The CourierMail cited CSC Jinling director Biao Ge as saying it would be “difficult for us to build the Titanic II but we have confidence to build it”.

Palmer refused to comment, but the company's marketing director James McDonald said they were “looking to have the keel laid in the third quarter of this year”.

Australian