Continue along this coastal road.
You will pass the new fort on your left:
On your right, you will see the 'New Port'. This is the main Corfu port and ferries from Italy, the mainland, and Paxos dock here. (Note: If you are arriving by ferry, turn right out of the main port entrance - direction 'Paleokastritsa'.)
The road will turn into a dual carrigeway, with the water on your right. Soon, you will approach a set of traffic lights and a road sign to 'Paleokastritsa 20km'