A UK ferry captain thought his vessel was facing in the opposite direction before an accident in October.
The master and mate of a Red Funnel ro-pax were suspended following the grounding after a collision with yachts involving the 4,100-gt Red Falcon (built 1994) off East Cowes.
An internal investigation leaked to the Isle of Wight County Press concluded the master was overwhelmed and disorientated in "white-out" fog.
He misread navigational equipment on the bridge, the report found.
"While (the captain) can be seen utilising the navigational aids, because his mental model was different he appears to dismiss evidence in front of him," it reads.
"The resultant action is to thrust in the wrong direction."
Further training needed
The report recommended all Red Funnel crew undertake further training for fog conditions.
Red Funnel chief executive Fran Collins told the newspaper: "This document serves to advise our team of the immediate steps being taken by the company to investigate the situation in full.
"This process is a key part of how we work with our internal teams and partners in an open and transparent way. We recognise that our customers need to understand what happened on 21 October and what Red Funnel is doing about it.
"Our internal report, when combined with the pending findings of the MCA [Maritime and Coastguard Agency], will put us in a position to issue more information."
The captain has now returned to duty as a chief officer.
Red Funnel has also said no further disciplinary action would be taken against him, regardless of the outcome of the UK Maritime Accident Investigation Branch (MAIB) investigation.