The curtain cloaking a potential deal between the Oregon International Port of Coos Bay and a large Asian industrial firm eyeing property at the North Spit was peeled back ever so slightly Thursday morning when Gov. Ted Kulongoski stopped in North Bend.

Many of the details surrounding the potential buyer are hush-hush. The project is known only as "Project TK," a code name the port gave the project in January. While the port is a public body, subject to disclosure laws that private companies are not, the port is within its right to limit providing greater detail about the potential buyer.

Port officials made it plain that no negotiations are under way with the company, but Kulongoski's comment did show a sense of optimism.

"As we get ready to close the deal, I am ready to go to Japan," the governor said.

The comment was made to a handful of reporters during a short interview following the signing of the North Bend airport bill. The governor was responding to a question about how the funding for the airport could benefit the port. Prior to the governor's comments, it was not publicly known in which Asian country the company was headquartered.

Later, about 40 city, county and state officials hobnobbed for 30 minutes after the governor signed the bill and several officials spoke of a Japan-based company involved in the production of silicone - presumably it would happen at a North Spit manufacturing plant.

During an interview later that afternoon, the port's executive director, Jeffrey Bishop, confirmed the governor's comment and elaborated on the potential project that possibly would be established on an 80-acre parcel owned by the port.

"I can confirm that they do use silica for the process," Bishop said. "Our assumption is it's for a silicone product."

Despite the information revealed Thursday, Bishop and Martin Callery, the port director of communication and freight mobility, both said the deal is no closer to a reality than it was in April - the port is still in the company's evaluation phase, they said.

"We are not in negotiations," Bishop said. "There has been a general discussion of costs for services and real estate. But no letters of intent. No contractual negotiations. That is way too premature."

Also unclear is any time frame about when the company would be selecting a finalist. Earlier this year, port officials said they hoped to get some indication from the company by July. While that target date has come and gone, Bishop and Callery still are optimistic. After all, the firm likely would create hundreds of jobs locally, Bishop said, as well as create other opportunities throughout the rest of the state.

"So it's become a real intriguing opportunity in that regard," he said. "I think if we are successful here, everyone will be pleased."

Bishop was not willing to discuss the finer details of the company's operation but did indicate one industry it would not be.

"There is no mining," Bishop said. "It's processing. It's very high value. It's not large. It's low volumes. The commodity is environmentally inert - to the best of our knowledge."

It was in mid-April that the port learned it was one of four remaining candidates being evaluated by the company. The port recently learned one other location had been added to the list of semifinalists - whittled down from an original list of 150 sites.

Port officials said two of the five locations are based in the United States, while three are internationally based.

The port has reason to be optimistic for other reasons as well.

In 2005, Callery said, the port has seen a 50-percent jump in inquiries about its holdings over the two previous years. Five other potential buyers have expressed solid interest in the properties, Callery said; however, only one still maintains any meaningful interest.

Port officials credit the recent completion of a natural gas pipeline between Coos Bay and Roseburg, an influx of state funding for an airport, and federal government money for railroad improvements as having spurred interest in economic development here.

Bishop indicated that the port will know the Japanese company means business when it begins seeking answers for needs beyond the basics.

"Companies that are really interested start talking about the other needs, quality of life, schools," Bishop said. "We haven't gotten to that level. But we haven't been this far in a long time."