Your note indicates that you cannot increase Coordinator memory to 2GB because the system cannot reserve heap; yet, only 8GB of 16GB RAM are in use. This seems strange to me.
A Simulator should be running the actual test case. The Coordinator does just that, coordinates. Simulators pass back information to the Coordinator. I would look to see if the test case is sharing global information that would be retained inside the Coordinator rather than within a simulator.
I am inclined to ask more about how your test case is designed. Is this a single test case that simply runs for days (with self implemented sleep steps) or is the test case scheduled to run every 15 minutes using CVS or a Monitor?
And, are you running using the Derby DB or an enterprise DBMS? I saw one note in your logs where a query took over 9 seconds to respond. If using Derby, perhaps the file system cannot keep up.