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The lighthouse is a buildable structure, near the far side dock, which allows for a safe return to the island it's built on without the boat being destroyed. It can only survive a certain number of days. In order to build it, the Monarch must send troops to destroy the dock portal, and pay 6 coins while at the very end of the dock.
After that, the lighthouse can be upgraded to stone for 12 additional coins, and finally to iron for 18 additional coins. The further it is upgraded, the longer the structure will survive.
The structure is built and upgraded instantly and without the need of builders.
When arriving at an island with a lighthouse, the boat will arrive, intact, at the far side dock. The accompanying builders will push the boat to the central dock, closer to the Town Center.