HALIFAX - Nova Scotia's economic development minister says officials in the state of Maine are firmly behind a proposed ferry service.

Graham Steele says talks held yesterday and Tuesday in Portland left him feeling encouraged.

Steele says Maine Governor Paul LePage has confirmed the state is willing to offer a five-million-dollar line of credit to the proposed ferry operator, STM Quest of Maine.

As well, the minister says the mayor of Portland, Michael Brennan, is firmly behind the proposal.

Steele says the terminal in Portland is in excellent shape because it continues to serve visiting cruise ships.

As for the terminal in Yarmouth, Steele says municipal officials have told him the federal government is in the process of divesting it to the municipality, which should have no problem cleaning it up.

Meanwhile, he says the province's negotiations with STM Quest started last week and are going well.