HAMILTON, Bermuda (AP) -- Bermuda plans to build a second cruise ship pier in the island's western region to accommodate large ships. <p>The government says it hopes the multimillion dollar project will transform an old naval town into a new tourism hub. </p><p>The government said this week that it has signed an agreement with a local developer. Dockyard was chosen because it already has a deep-water pier that can accommodate ships longer than 710 feet (216 meters). </p><p>Bermuda has two smaller piers that have lost popularity as cruise ship companies build larger vessels. The government had warned that expanding those piers would damage the environment. </p><p>About 226,000 cruise ship passengers arrived through August this year, a nearly 18 percent drop from 2007.</p>