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Background
Once you get inside Loredo's compound, Roche will notice a ballista over at
#1. He then asks you to disable it as he doesn't want Loredo to have control over what sails into the dock and what doesn't.
Walkthrough
You'll notice that a lot of soldiers and bodyguards around are having fun with women, while the lonely ballista guard (
#1) is doing nothing except guarding the ballista. Therefore, you could find him a woman.
There's a free woman named Margarita standing nearby at
#2. You could hire her to lure the ballista guard away from the post. You will then get an option to either pay her (60 orens should do the trick) or you can make it up for her in a different way, by humiliating two bullies over at the table near her. Their names are Myron and Alphonse and all you have to do is defeat them in an arm wrestling match and you'll gain 50 experience points. Then go back to Margarita.
Either way, she'll lure the guard away from the ballista and you'll be able to disable it. You'll receive additional 100 experience points.
1 - Ballista and the guard
2 - Margarita