This post is authored by Cesar Alvarez | Australian Graduate School of Policing and Security
In today’s interconnected world, the boundaries between organised crime and terrorism are increasingly blurred. My research and teaching focus on this critical intersection, examining how narcotics trafficking funds terrorist organisations—and why this matters for countries far beyond the source of the drugs. The evolution of the drug trade, particularly the emergence of narco-submarines, offers a compelling example of criminal innovation and the global reach of these illicit networks.
When most people think of drug smuggling, they imagine hidden compartments in trucks, containers, suitcases, post parcels, or boats. Few realise that Colombian cartels have, for decades, been quietly investing in a different kind of technology: narco-submarines. These semi-submersible vessels, often constructed deep in the jungle, are designed to evade radar and patrols by travelling just below the water’s surface. Early models were rudimentary, but today’s versions can cross thousands of miles of open ocean, carrying multi-tonne shipments of cocaine.
The stakes are high. In Australia, a kilogram of cocaine can fetch up to USD $240,000, compared to about $40,000 in the United States. This price discrepancy makes Australia a prime target for transnational organised crime groups willing to invest over a million dollars in a single submarine. These vessels are often used in complex operations, transferring their cargo mid-ocean to further obscure the drugs’ origins and evade law enforcement.
The connection between the drug trade and terrorism is not just a plotline for films—it’s a reality with serious security implications. Many terrorist organisations have turned to narcotics as a primary source of revenue. Groups such as Colombia’s FARC initially taxed, but now directly managed drug production to fund their operations. As profits from the drug trade are funnelled back into terrorist activities, a new and hard to disrupt cycle is created. The globalisation of finance and communication, including the use of cryptocurrencies and encrypted messaging, only exacerbates the crime-terror implications for security agencies, government, and society alike.
Australia is not immune to these global dynamics. Our country’s high demand and high street prices for illicit drugs make us a lucrative market for traffickers. Criminal networks exploit international shipping routes, offshore jurisdictions with weak regulations, and technological advances to move drugs and launder money. Recent multinational operations, such as Operation Orion—which seized hundreds of tonnes of cocaine and intercepted narco-submarines in the Pacific—highlight the scale and sophistication of these threats.
The implications go beyond drug use. The same networks that smuggle narcotics can also facilitate the movement of weapons, people, and money for terrorist purposes. This convergence poses a direct challenge to Australia’s law enforcement and national security agencies.
My work is not confined to academic journals, or seminar rooms. I am deeply committed to translating research into practice by providing capacity building for Australian law enforcement and public servants. This involves helping agencies identify and disrupt high-risk criminal entities through multi-agency cooperation; adapting to new technologies; and shaping policy by providing specialised knowledge on how these global, and specially Latin-American based networks operate.
Recently, I had the opportunity to share insights with the Wall Street Journal, highlighting how innovations like narco-submarines are changing the landscape of the drug trade and what this means for countries like Australia. By connecting academic expertise with frontline practice, we can enhance our collective understanding of these challenges and strengthen our responses.
The intersection of transnational organised crime and terrorism is one of the defining security issues of our time. By studying how narcotics trafficking finances terrorism—and by working directly with those tasked with countering these threats—we can build more resilient societies. The fight is global, but the solutions start with informed, collaborative action at home.