ST. JOHN'S, N.L. -- Marine Atlantic says one of its employees steered a ferry the wrong way when it ran aground and damaged its bow in southwestern Newfoundland in July.

The federal Crown agency says the captain of the MV Blue Puttees ordered the quartermaster to turn the vessel to its port or left side as it was departing Port aux Basques for Sydney, N.S., on July 31.

Marine Atlantic says the quartermaster turned the ship to its starboard or right side, causing it to run aground.

The company says the conclusions come from the Transportation Safety Board, which investigated the incident.

The ferry had 398 passengers and 91 crew members aboard at the time, but nobody was injured.

The employee has been dismissed and the Blue Puttees has since been returned to service.

Marine Atlantic says it is reviewing the safety board's recommendations, including one calling on the agency to review the speeds of vessels entering and leaving port.