The Port of Cork is set to vacate the site in the next two years and plans to create an urban area the size of Blackrock are being prepared.
As many as 4,000 homes could be built in the area, which is just minutes from the city and on a train line.
Ms Doherty said it is ideal for modern city living.
“They are currently master-planning the site and it is a big opportunity for the city,” she said.
“It is on a rail track and could have a huge number of homes in an ideal area.”
It could be a boost in terms of adding to the housing supply in the city centre, with land scarcity a major problem in recent times.
City Hall owns no landbanks in the docklands, limiting the level of intervention it can make in the area.
Ms Doherty said: “We are very supportive of the development of the area. We have received government funding under LIHAF (Local Infrastructure Housing Activation Fund) to develop the area and support some of the docklands developments, but we don’t own any land ourselves.
“Our role is to bring clarity to planning and to assist in the broader development of the area.
“I do believe that if one site moves in the docklands, others will follow and start to build.”
Cork City Council owns two significant landbanks, both on the north side of the city.
Work is underway to develop both of these, with some 750 houses potentially being delivered on the sites.
The council is in the process of tendering for the infrastructure works at the Old Whitechurch Road site to make it construction ready.
Once finished, it is currently earmarked for as many as 600 houses, with an affordable housing scheme proposed.
Separately, City Hall is now set to move forward with the development of 147 new homes at Boherboy Road after the granting of funds from the State for infrastructural development at the site.
Ms Doherty added: "We received planning permission and have been in discussions with our parent department about having very strong social and affordable housing schemes in the city.
There are lots of people who are not eligible for social housing and are not in a position to buy a house of their own without an affordable scheme."