Better service will help boost 2022 income.Ottawa—Battered by a rejected takeover bid and public attacks by a disgruntled investor, CN has released its plan to boost income and cut operating costs.CN President and CEO JJ Ruest said the plan called Full Speed Ahead – Redefining Railroading aims to add $700 million in additional operating income and cut the railway's operating ratio to 57 per cent next year.“CN's ambition is to build the premier railway of the 21st century by methodically investing in technologies to deliver high-quality service to customers, improve safety and sustainability, create capacity and reduce costs and delays,” he said.“Just as CN pioneered the industry's focus on efficiency to increase reliability, we are now well-positioned to lead the industry through its next transformation by investing in the success of our customers, workforce and communities while delivering enhanced financial results.”Previous strategic investments and the strong condition of the existing network will bring capital spending down to approximately 17 per cent of revenue for 2022 while retaining CN's commitment to safety and customer service, he said.On the heels of being outmaneuvered in by Canadian Pacific to take over the Kansas City Southern, Ruest and the CN board came under fire from TCI Fund Management, which holds a 5.2 per cent stake in the railway.TCI said CN has the best rail network in North America but has been “underperforming for too long, so change is required. We did not seek a proxy fight, but without urgent action, CN's operational and financial performance will continue to lag its peers under a Board that lacks the right railroad experience and operational expertise. The bid for KCS exposed a basic misunderstanding of the railroad industry and regulatory environment. The Board consistently misjudged the STB and displayed flawed decision-making, committing billions of dollars to an ill-conceived pursuit of an unattainable asset. CN should focus on getting better, rather than bigger.”CN did not respond to TCI's claims but it said would resume a share repurchase program that would see $1.1 billion in share buybacks by the end of January.In the midst of these events CN was slapped with a $2.5 million fine for spraying weed killer along its track near the Skeena River in B.C. The railway was hit with a $2.5 million fine for dumping diesel fuel in an Edmonton storm sewer and a $1.1 million fine in 2018 for another environmental offense.TUI wants Ruest and several board members including Chair Robert Pace booted from their posts but Ruest made it clear he intends to stay in his job.Still questions remain why CN, which already owns the Illinois Central Railroad, did not see that its bid for the KCS would not be approved by the U.S. Surface Transportation Board on competitive grounds.CN said it expects to grow its operating income and earnings per share (EPS) by approximately 20 per cent next year increasing total shareholder distributions. It will prioritize rail operations, including car velocity, train speed and train length and streamline management, especially support functions, to improve labor productivity by accelerating speed and quality of decision making.