Record cocaine bust shows why Australia is a prime smuggling target
Australian police say they found 2.7 metric tons of cocaine in underground bunkers on the outskirts of Sydney — the largest-ever seizure in a country with a high rate of cocaine use.
The drugs were buried in plastic tubs beneath shipping containers at a semi-rural property in Londonderry, west of Sydney, The Associated Press reported. Police estimated the drugs had a street value of $572 million in U.S. currency.
At the scene, federal agents apprehended two local men, ages 21 and 25. Police charged them with possessing a commercial quantity of an illicit drug, which carries a potential life sentence.
Why it matters
The record seizure highlights Australia’s role as one of the world’s most lucrative cocaine markets.
Bloomberg reported that the latest United Nations World Drug Report showed about 4.5% of Australians use cocaine each year, double the U.S. rate. Bloomberg also reported that Australian Criminal Intelligence Commission wastewater analysis found national cocaine use rose 69% to a record in the 12 months ended August 2024.
Australians reportedly pay some of the world’s highest prices for cocaine, making the country a lucrative market for drug traffickers. According to Bloomberg, cocaine in Sydney can sell for about $213 per gram, almost twice the price in London.
Before the new seizure, Australia’s record cocaine haul was 2.34 metric tons discovered on a fishing boat near K’gari, formerly known as Fraser Island, in 2024. Straight Arrow reported at the time that Australian police valued the haul at $494 million in U.S. currency.
How police say the cocaine reached Sydney
The shipment discovered near Sydney first came ashore by boat at Midge Point in Queensland before being moved south, police said. Authorities alleged a Sydney organized crime group then transported it by road about 1,100 miles to the city.
Police also said they suspect the shipment came from the same mother ship as a separate Queensland seizure involving 178 kilograms of cocaine and 142 kilograms of methamphetamine, according to the AP. Authorities suspect the mother ship was MV Wealth, a Belize-flagged cargo ship seized in Solomon Islands as part of an organized crime investigation
How the situation is evolving
Authorities say cocaine routes into Australia are becoming more complex.
As Straight Arrow reported in April, record cocaine production in Colombia has helped fuel rising cocaine use across much of the world, including Australia.
Criminal groups are also exploiting legitimate supply chains. Bloomberg reported that a parliamentary inquiry found about 1,000 individuals and 100 companies were suspected of criminally hijacking Australia’s supply chain. The inquiry said border officials intercept only one-fourth of illicit drugs entering the country.
Michael Barnes, the former head of the New South Wales Crime Commission, told Bloomberg that Australia’s drug demand is helping fund violent criminal networks. “There is no fair-trade cocaine,” he said.
What’s next
Australian authorities are expanding enforcement beyond drug seizures.
Bloomberg reported that beginning in July, compliance oversight will expand to include real estate brokers, legal professionals, and accountants — all of them alleged gateway sectors frequently exploited to obscure drug revenue.
This regulatory shift follows a sweeping two-year asset-forfeiture campaign by New South Wales police, who have confiscated premium vehicles, gold bullion bars, maritime vessels and high-end watches from local syndicates.
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Ella Rae Greene, Editor In Chief
