On 23 April 2008,  Union Minister of State for Civil Aviation, Mr.Praful Patel, inaugurated Airport Authority of India's new terminal building at Porbandar airport in Gujarat.

AAI has constructed a new terminal building at the airport with all modern facilities for handling of 100 incoming/100 outgoing passengers at a time. The total covered area of the terminal is 4000 sq.m and has been built at a cost of Rs.13.50 crore.

The proposed terminal building is a combination of contemporary concrete and steel structure with glass. It has various facilities like six check-in counters, weighing machines, two conveyor belts at the arrival area and one at the departure area, public address system, CCTV, XBIS, security booths for frisking, 11 kV substation along with standby DG Sets, external lighting, lightning conductor/arrester system, air conditioning, security hold, VIP room, equipment room & ATC tower, etc. The terminal building has also been provided with wet riser type fire fighting system and fire alarm system.

AAI has constructed a new apron to accommodate 2 B737-400 type aircraft and in addition, a spacious car parking with the capacity of 50 cars at a time has also been constructed.