Plans to install new X-ray equipment on Hamilton's docks will move forward despite an anticipated $2 million shortfall in revenue, the City of Hamilton has pledged.

The organisation recently announced that several projects would be put on hold because of the financial difficulties it faced.

However, a spokesperson said work on the $2.6 million X-ray system was still going ahead.

The scanning equipment is necessary if Bermuda is to continue shipping containers to the United States next year.

Laws there demand all containers which arrive in the US must be X-rayed before leaving their departure country as of January 2012.

The City of Hamilton partnered with Government on the initiative with the idea the equipment would also stem the flow of illegal drugs into the Island.

It would also enable Customs to examine every container arriving into the Island without having to search them by hand.

"Everything is moving ahead as planned with the X-ray project," the spokesperson said. "The City of Hamilton continues to work with HM Customs and other partners on this important national project."