A DISPUTE between rival pilotage providers in Port Phillip alleging one used unlicensed pilots was resolved on confidential commercial terms in a Federal Court case – but the relevant safety regulator did not consider itself ‘properly equipped’ to manage the situation.

According to exclusive reports in The Age on Sunday and today, Port Phillip Sea Pilots claimed Australian Pilotage Group (now Auriga) used pilots without appropriate licenses on at least 56 occasions between late 2020 and early 2023 to handle ships into and out of Bay ports.

PPSP sued APG/Auriga in the Federal Court but the matter was settled earlier this year before proceeding to trial.

The Age reported the alleged transgressions were “an open secret” in the industry but what is now Safe Transport Victoria – the state regulator of pilotage licenses – had declined to investigate.  DCN understands the matter was also brought to AMSA’s attention but the authority declined to become involved, stating it was not within its jurisdiction.

In today’s report The Age revealed STV, in an internal review begun 18 months ago but never completed nor released, considered its ability to manage pilotage was beyond its capacity, and floated the transfer of responsibilities to Ports Victoria.

“The majority of these issues relate to lack of resources, internal expertise, and business continuity planning,” the internal report found. Its authors said the pilotage team had experienced a significant reduction in size in the past three years, and that current staffing levels and workload were challenging their ability to meet their responsibilities, which include licensing marine pilots.

“Despite the staffing reduction posing challenges, the team has been consistently fulfilling their responsibilities, leveraging the significant experience of its members,” the report said, quoted by the Age. “However, concerns have been raised about the potential risk of overlooking important safety issues due to the overwhelming workload faced by the team.”

In statements issued to the publication the Victorian Government said: “Safe Transport Victoria modernised its operations structure in 2023, bringing in additional specialist skills into the organisation and boosting safety across all the industries it regulates. Safe Transport Victoria works closely with Ports Victoria and independent pilot examiners to ensure all pilots are appropriately licensed, and regularly carries out enforcement operations across our ports.”

Auriga said the court case had been “resolved on confidential terms to the satisfaction of both parties” and their operations had been audited.

“Separately and in more general terms, Auriga Pilot systems and processes have been audited by Safe Transport Victoria and Ports Victoria and independently by an ISPO-approved classification society auditor under the International Standard for maritime Pilot Organisations code,” it said. “We remain fully licensed and approved by all regulators to operate across the ports of Geelong and Melbourne.”

Under the Maritime Safety Act, a person who acts as a pilot without a licence that is “in effect” could be penalised more than $23,000 per offence. The allegations against Auriga were made in a civil trial and it will not incur any penalties unless action is taken by regulators, The Age noted.