Isle of Sheppey town, site of a former naval dockyard (9)
I believe the answer is:
sheerness
(Other definitions for sheerness that I've seen before include "port" , "Verticality (of, eg, a cliff); town on Isle of Sheppey" , "Perpendicularity; Isle of Sheppey town" , "Kent resort" , "Site of former naval dockyard in Isle of Sheppey" .)