NANJING - A shipyard operated by Sinotrans & CSC Holdings Co, Ltd has signed a memorandum of understanding with Australian billionaire Clive Palmer to build a replica of the Titanic, the shipyard confirmed Wednesday.

"The agreement to build the Titanic II was signed on April 20, but details about its budget and design have yet to be decided. A construction contract has not been signed, either," said Li Wenbao, an official with the state-owned Jinling shipyard.

The news was first announced by Palmer on Monday. It has been reported that the ship's maiden voyage is scheduled for late 2016, taking the ship from England to New York in accordance with the original ship's planned route.

More than 1,500 people perished after the Titanic went down on April 15, 1912 after striking an iceberg on its first voyage, from Southampton to New York.

Jinling Shipyard in Nanjing, capital city of Jiangsu province, has about 3,000 employees and has built ships for clients in the United States, Canada, Britain, Germany, Japan and Singapore.