This is Port Royale 3 (released in 2012), which has dreadful combat, it's a complete mess that makes you thankful for an auto-simulate option. I'm assuming you're referring to Port Royale 2, that had decent combat. Combat in the first Port Royale was actually pretty good, not sure why they overhauled it to begin with.
Ah, thanks for the clarification. Yes, I was indeed talking about Port Royale 2. Haven't played 3 yet.