The Portuguese navy, air force and national drugcombating unit joined the PJ in the operation, named Operation TAGA, staged at the start of this week and which aimed to clamp down on drug-trafficking at sea.
A statement from the PJ explained the cocaine was found onboard the vessel after it was intercepted out at sea, and weighed 1,130 kilos in total.
It was being ferried from Latin America to Europe, where it was intended for distribution throughout various countries.
Seventeen people aged 24 to 63, all of foreign nationality, were arrested in connection with the bust. They are believed to form part of a transnational criminal organisation with roots in various countries on different continents.
The containership was escorted to mainland Portugal, where it has been retained at the Alcântara docks in Lisbon.
The operation was carried out following an exchange of information with the Lisbon-based Maritime Analysis and Operations Centre - Narcotics (MAOC-N).
An investigation is still ongoing under the PJ police, and is being carried out in collaboration with authorities in other countries including France and the UK.