water separation isn't that common between the first and second stages. I'm sure some pumps have it, but the vast majority don't. The compression ratio isn't all that high in that stage so not a lot of water will knock out.
If you want to improve cooling, the best bet is probably to remove the fan/pulley and replace it with an electric fan. Will help quite a bit. Those fans are only running around 1500rpm which isn't bad, but you can get a lot more air flow with some electric fans.
Thanks for your reply tbone

... I have indeed been leaning towards a ducted air system using electric fans as suggested
Insofar as the first stage, I acknowledge your point that it only runs around six and a half Bar, however two events have prompted my wanting to improve on the design, the first event being that I left my compressor idle for a little over three months, and when serviced thereafter, found light rust in stage two's bore, which necessitated an innovated repair in the form of boring out cylinder two, hard chroming it back to 'standard', then honing, and reassembly along with new rings and valves ... This event has prompted a short monthly "blow out the cobwebs" compressor run, irrespective of any air requirements.
The second event, (albeit seemingly unrelated), is that I have a small low pressure air compressor, (approximately the same pressure as the Capitano's first stage), that I use for odd jobs / tinkering, that without going into great details of why, installed a cars oil cooler between it's first, (and only), stage and it's air storage cylinder, along with moving it's water separator, that was positioned after the regulator, to directly after the newly installed oil cooler, and ... I no longer have it's air storage cylinder filling with water, along with a cooler running system, (and a sh## load of water being "caught" in the re-positioned water separator, which previously trapped little if any water!)
I'm willing to bet that the lack of moisture removal between stage one and two was the major contributing cause of the aforementioned stage two rust issue, and ... as cooling the air is the best way to remove suspended water particles, logically the best improvement would be to both improve the inter-stage cooling, and add an additional water separator?
You raised an interesting additional point with regards fan speed that prompted a quick test too

...
You mentioned that the fan runs around 1500 RPM ... I checked the Bauer spec. and it should be running at 1280 RPM ... Mine is running just under 1000 RPM, so a primary pulley change to correct that is certainly in order, (it also explains why I have only ever managed some 110 l/min against the claimed 140 l/min ...
I don't think the additional 280 RPM will contribute much more air from the fan, and if anything, will probably be negated with the additional heat from spinning the compressor some 30% faster.