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New MD for Cummins South Pacific

Andrew Penca has been appointed managing director and general manager of leading heavy-duty diesel engine supplier Cummins South Pacific.

Cummins South Pacific, which operates close to 40 sales and service facilities in Australia, New Zealand and PNG, is a wholly-owned subsidiary of Cummins Inc., the world’s largest independent manufacturer of diesel engines.

Penca joined Cummins Inc. in the USA in late 2007 as assistant to the president and COO, a role in which he led a number of key strategy and operations-related projects.

He then moved to Cummins’ largest heavy-duty on-highway diesel engine production facility, Jamestown Engine Plant (New York), where he became assembly and materials operations director and led operations excellence process improvements.

In 2011 Penca moved to China to become general manager of Chongqing Cummins Engine Company (CCEC), a joint venture diesel engine manufacturing operation that has contributed significantly to Cummins’ robust growth in China.

Penca has a bachelor’s degree in Business Administration, with honours in International Management, from Butler University (Indianapolis), and an MBA in finance and accounting from the University of Southern California.

Prior to joining Cummins he was Commissioner of Indiana Workforce Development and before that worked for Honda R&D Americas in advanced product planning and concept development.

Penca will take up his position at Cummins South Pacific in Melbourne on July 1 and report to Peter Jensen-Muir, executive managing director – Cummins Asia Pacific

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana (USA), Cummins employs around 48,000 people worldwide. The company earned $1.48 billion on sales of $17.3 billion in 2013.

Contact: Murray Clifford, […]

Cummins launches app

Cummins launches app for truck engine customers
The Cummins Power app has been launched by Cummins South Pacific, placing a variety of information at the fingertips of its on-highway truck engine customers in Australia and New Zealand.

Available for use with Apple iPhone and Android operating systems, the Cummins Power app is a valuable resource for customers and drivers wanting branch and dealer locations and routing to these locations, 24/7 access to the Cummins Support Centre, warranty information and engine fault code search and definitions.

“The app can be used as a service locator, finding the nearest Cummins branch or dealer to the vehicle location and then using the phone’s mapping function for routing to the facility,” says Nick Gorgievski who was behind development of the app as a member of the Cummins South Pacific service operations team.

“This is just one of the features aimed at keeping Cummins customers connected, anywhere and at any time.”

From the start of the six-month development and testing process the aim was to build a functional app that added value for operators of Cummins-powered vehicles.

“Attention was paid to aspects such as thefault code and service centre search criteria to make sure that no matter where you are you can get the information you want. Even if out of internet range, the app can still be used by drivers who may be in remote country locations,” says Gorgievski.

Cummins is working on adding more features in the future with the focus on giving customers further access to relevant information about their engine.

The ‘Cummins Power’ app is a free download available from the Apple App Store for iOS devices and Google Play for Android devices.

 Contact: Murray Clifford, Manager – Communications & PR, Cummins South Pacific, […]

Cummins partners with college

Cummins partners with college to develop future generation of apprentices  
Cummins has partnered with a college in Melbourne as part of a program to develop the future generation of apprentices.

The new Trade Training Centre at Point Cook Senior Secondary College in Melbourne is equipped with diesel engines and other equipment donated by Cummins.

“Our aim is to influence the career pathways of students and recruit some of these students directly to Cummins’ apprentice program,” says Kate Evans, apprentice program manager at the Cummins Laverton branch in Melbourne.

Cummins employs over 200 apprentices in the South Pacific region and considers the new Trade Training Centre vital to encouraging apprentices to the industry.

The diesel engines donated by Cummins – one of which is a fully operational training module – are housed in the Trade Training Centre’s heavy diesel training room named after the late Clarrie Malvern, a Cummins pioneer in Australia.

Malvern’s career with Cummins spanned 1955-1984 during which time he established the foundations for Cummins’ outstanding service support network in Australia which remains the benchmark in the diesel engine industry today.

Cummins has partnered with Point Cook Senior Secondary College since 2012 as part of the Young Ambassadors for Industry program, brokered by Wynbay LLEN (Local Learning and Employment Network).

Up to 10 apprentices from Cummins’ branch in Laverton (Melbourne) have been working as ‘Young Industry Ambassadors’, visiting the school and speaking to students and careers advisors about ‘life as an apprentice at Cummins’.

Cummins has also partnered with two other schools as part of the program.

“Industry engagement with schools is vital to building a strong pipeline of skilled workers, with research showing that employers and schools must connect early and often to achieve the best outcomes,” says Kate Evans.

“The new Trade […]

Cummins unveils ISG

Cummins unveils new global heavy-duty engine
Cummins has announced a new global heavy-duty engine platform for the trucking industry. Known as the G-series, the new in-line six cylinder engine will be introduced as the ISG11 (10.5 litres) and ISG12 (11.8 litres).

The G-series achieves a remarkably low engine weight of just 862 kg in a compact package while delivering peak outputs of 515 hp and 1700 lb ft of torque.

“We’re currently looking at our options for ADR80-04 (the next round of emissions regulations for Australia) and the ISG12 is one of those options,” says Sean McLean, general manager of automotive products for Cummins South Pacific.

ADR80-04 is not finalised but is anticipated to be introduced in 2017-2018.

The G-series platform has been developed by Cummins’ global technical resources, lead by a US design team, and will be released initially for the Chinese market.

Engines meeting Euro V, Euro VI and US EPA 2017 emissions regulations are in development.

A key design focus for the G-series has been to achieve significant weight savings in order to increase the power-to-weight ratio. A sculptured block retains high rigidity while removing unnecessary mass. The use of composite material for the oil pan and valve cover provides further weight savings.

The G-series incorporates Cummins’ XPI (Xtra-High Pressure Injection) fuel system, derived from the 15-litre ISX. With multiple injection events driven by high-precision Cummins electronic controls, the XPI fuel system contributes to the impressive peak torque of 1700 lb ft and torque rise as high as 60 percent.

The G-series offers fuel efficiency through parasitic reducing technology without variable-flow pumps that add unnecessary cost and reduce reliability. Its Single Cam In Head (SCIH) design with roller valve train and high-efficiency intake ports continues the design theme of minimum […]

Cummins (CMI) announces results for 2013

Cummins Announces Results for 2013; Shares Expectations for Revenue and EBIT Growth in 2014 and Reaffirms Commitment to Increase Cash Returned to Shareholders
COLUMBUS, IN — (Marketwired) —

Fourth quarter revenues of $4.6 billion, EBIT of 12.3 percent of sales
2013 revenues of $17.3 billion, EBIT of 12.5 percent of sales
Expects 2014 revenue to grow between 4 and 8 percent and EBIT to be in the range of 12.75 to 13.25 percent of sales
Plans to return 50 percent of Operating Cash Flow to shareholders in 2014
Cummins Inc. (NYSE: CMI) today reported results for the fourth quarter and full year 2013.

Fourth quarter revenue of $4.6 billion increased 7 percent from the same quarter in 2012. The increase year-over-year was driven by higher revenues in North America, China and Brazil partially offset by weaker sales in Mexico, India and Australia.

Earnings before interest and taxes (EBIT) were $566 million for the fourth quarter or 12.3 percent of sales. This compares to $532 million or 12.4 percent of sales a year ago, excluding restructuring costs.

Net income attributable to Cummins in the fourth quarter was $432 million ($2.32 per diluted share), compared to $404 million ($2.14 per diluted share) in the fourth quarter of 2012 excluding restructuring charges. The effective tax rate in the fourth quarter of 2013 was 15.7 percent and reflects one-time benefits of $0.18 per diluted share, and a lower than expected operating rate in the fourth quarter that contributed $0.20 per diluted share.

Revenues for the full year were $17.3 billion, flat with 2012. Revenues in North America increased 3 percent but were offset by international sales which declined by 4 percent. Within international markets declines in Mexico, India, Australia and Europe offset growth in China and Brazil.

EBIT for […]

Hallinan hails five star support

John Hallinan is a crusty veteran of the trucking industry, a man with a sharp eye and quick wit whose verbal jousts include numerous anecdotes of the mechanical maladies that have beset his equipment over the years in a tough working environment.
Once past the rough exterior though, you get to see a man who displays genuine pride in the business he has built up since the late 1960s.

“Cummins? Exceptional service,” he says in a moment of serious reflection. “The relationship thing is very important and we have that relationship with Cummins and Western Star.”

The Hallinan family is based at Tara, a small rural town of 1200 people 300 km west of Brisbane.

Hallinan & Co had its origins in 1968 when John bought his first truck and today the operation incorporates Meanderra Transport, owned by his sons Cameron and Matthew.

At the front line of the fleet are 10 Western Stars, all with Cummins power, and they use their muscle to pull B-double and roadtrain configurations up to four trailers.

Trucking is entirely a practical undertaking for Hallinan, a business that has built-in versatility, able to react quickly to whatever the different seasons or demands throw up.

“We have stock crates, conventional tippers, side tippers, flat tops, drop decks, tilt trays, water tankers,” says John Hallinan.

Livestock is the biggest haulage component of the business today. “We operate mainly out west with our livestock trucks, up to 1,500 km from Tara,” he points out.

Grain and cotton seed are other key haulage tasks, and the company is also geared up to service the coal seam gas industry whether it be moving rigs and other gear or providing water for the drilling process.

John Hallinan has learned from sometimes painful experience that in an industry as fiercely demanding as livestock haulage, service support is critical.

”When you ring Cummins you can at least get someone out to deal […]

Fresh Focus

Fresh produce carrier Freshwayz, one of the fleets involved in Cummins’ extensive field test program for the ISXe5, has taken delivery of a further four of the new 15-litre variant.
The company’s field test engine, installed in a Kenworth T409 SAR, has now clocked up over 300,000 km, impressing with its reliability and fuel efficiency.

“The reliability is the answer for us. It’s where we want it to be which is critical as we’re carting time-sensitive freight daily and need that reliability to do the job properly,” says Toby Toohill, managing director of Freshwayz.

The ISXe5 is an addition to Cummins’ 15-litre engine lineup, achieving Euro 5 emissions compliance through SCR exhaust aftertreatment technology which involves dosing AdBlue into the exhaust stream to reduce oxides of nitrogen (NOx) emissions.

Freshwayz was established by Toohill in 2006, primarily to cart produce for Rugby Farms, a time-honoured family business that grows and packs fresh vegetables for both the domestic and international markets.

“Reliability is the answer for us… it’s where we want it to be.”

One of Rugby Farms’ biggest clients is the Coles supermarket chain which sees the Freshwayz fleet operating to most states in Australia as well as the Northern Territory.

The Freshwayz fleet of 24 trucks – half of which are B-doubles – operates from a base adjoining Rugby Farms’ headquarters at Gatton in the Lockyer Valley, around 90 km west of Brisbane.

Toby Toohill has been in the transport game for 30 years. His focus for a number of years was produce carrier Market Drive which he set up in the mid-80s with his father Peter and was then acquired by Nolan’s Interstate Transport in 2004.

When the opportunity arose in 2006 to form a partnership with Rugby Farms to service its expanding transport needs, Toohill was quick to take up the challenge and establish Freshwayz as a dedicated fresh produce carrier.

Today, the Freshwayz fleet is mostly powered by […]

In Cloud Land

Data centre giant Digital Realty is relying on Cummins for critical protection power at its new facilities in Sydney and Melbourne.
The company that boasts Facebook, Microsoft, Google and Yahoo among its clients has set up shop in Australia, building data centres in Sydney and Melbourne as part of its ambitious global growth strategy.

American company Digital Realty Trust, the world’s largest data centre provider and wholesaler, has spent billions of dollars in recent years buying properties and investing in new ones in North America, Europe, Asia and Australia.

Cloud computing is the driving force behind Digital Realty as data centres become big business in providing managed data storage services.

In fact, cloud computing – where computing resources are provided as a service over the Internet – is predicted to be one of the biggest growth industries in the history of business.

Rather than having to invest in expensive on-site computer infrastructure, businesses can access computing power as they need it by tapping into a service provider’s data centre.

Digital Realty has two business models: designing and building new data centres for leasing to providers; and purchasing existing data centres. The company currently operates more than 110 data centres in 32 markets around the world.

Digital Realty’s first operational in Australia is at Erskine Park in Sydney and has as its anchor client Rackspace, one of the biggest cloud computing providers in the world which began offering live services from the facility in late 2012.

The company’s second data centre, commissioned early in 2013 in Melbourne, is 100% leased to a major bank. Both facilities utilise Digital Realty’s ‘Turn-Key Flex’ technology which allows customers to lease fully equipped electrical and mechanical data centres that are move-in-ready.

“Cummins is a global supplier to Digital Realty because of its proven track record…”

Cummins has provided the critical diesel generator back-up power at both sites, initially installing six C2250 gensets at each data centre […]

Right On Track

A fleet of 22 new locomotives – the first of their kind in the world – has transformed the haulage efficiencies for one of Australia’s leading grain businesses, CBH Group.
Cummins’ high horsepower QSK60 and QSK78 engines are the driving force behind the new standard and narrow gauge locomotives, built by MotivePower in the United States. A further three new locomotives are on order.

CBH, a farmer-owned cooperative controlled by nearly 5000 grower-shareholders in Western Australia’s sprawling grain belt, invested over $175 million in its new fleet of 22 locomotives and 574 wagons which went into service in 2012.

Escalating freight rates and the need to move more tonnes to port more efficiently forced CBH to search globally for a new rail partner. “We wanted to keep freight rates in check,” says Mike Poore, freight contracts manager for CBH.

“The rates had gone up 38 percent over two seasons while fewer tonnes were being delivered to port.”

With annual receivals of around 10 million tonnes at 197 country sites, CBH wanted a better deal for its growers by revitalising the way grain is transported.

No stone would be left unturned to achieve this goal. A key part of the plan was for CBH to buy its own rolling stock for the first time.

American company MotivePower – an industry leader in the design and manufacture of diesel-electric locomotives – won the tender to build the 22 units for CBH, all powered by Cummins QSK engines, engines that are hitting productivity targets in the harshest operating environments in the world.

Project teams from CBH also visited a number of countries in search of an operator for its trains – a search that resulted in Watco winning the business from five other bidding companies.

One of the largest short haul railroad companies in the United States, Watco set up operations in Western Australia early in 2012, ready to provide a […]

Queensland bus manufacturer Bustech

Queensland bus manufacturer Bustech has high hopes for the future of its double-decker, eight of which have begun a NSW Government trial in Sydney.
“These buses represent more than a trip down memory lane for transport history buffs…they could well be the way of the future,” says NSW Minister for Transport Gladys Berejiklian.

“The new double-decker buses are an exciting addition to our public transport fleet and show the NSW Government is prepared to look at new and different ways to improve public transport.”

Gold Coast-based Bustech is the bus manufacturing arm of the Calabro family’s Transit Australia Group which has around 700 buses in service between the Gold Coast and Cairns. These buses operate under the Surfside and Sunbus banners.

Cummins’ presence in the Surfside and Sunbus operations has grown significantly in recent years to the point where the 8.9-litre ISLe5 is now described as “the best engine in the fleet” by Transit Australia Group director Joe Calabro.

“Significantly, the ISLe5 is showing a substantial improvement in fuel economy over our ISC engines while meeting a much stricter emissions standard,” Joe Calabro reveals. “My workshops are also very happy with Cummins’ back-up service which is considered second to none.”

“My workshops are also very happy with Cummins’ back-up service which is considered second to none.”

With close to 100 ISLe5 engines in service and fuel economy, performance, reliability and support rating highly, the 8.9-litre Cummins became an obvious choice for the Bustech doubledecker buses. So what led to the development of the double-decker? “We were asked by TransLink (South East Queensland’s public transport provider) to put some 18-metre articulated ‘bendy’ buses into service,” says Joe Calabro.

“We used to run them and know their inherent problems in city work – their […]