Old sailors hanging round a port (4)
I believe the answer is:
oran
'port' is the definition.
(I've seen this before)
'old sailors hanging round a' is the wordplay.
'old' becomes 'o' (common abbreviation eg in OE for Old English).
'sailors' becomes 'rn' (abbreviation for Royal Navy).
'hanging round' is an insertion indicator.
'rn' enclosing 'a' is 'ran'.
'o'+'ran'='ORAN'
(Other definitions for oran that I've seen before include "Algerian seaport" , "Algerian port" , "African port" .)