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By Allan Dowd

VANCOUVER, British Columbia, March 26 (Reuters) - Human error was the primary cause of a fatal Canadian ferry accident last year on a route traveled by thousands of tourists annually, according to a report released on Monday.

The Queen of the North sailed on the wrong course for 14 minutes before it slammed into Gil Island on Canada's Pacific coast and sank, according to the internal investigation by the ship's operator, BC Ferries.

While the report does not use words "human error" it found no malfunctions with the navigational or autopilot systems and said the bridge crew apparently lost track of where the ship was before it hit land.

"The Divisional Inquiry Panel concluded that human factors were the primary cause of the sinking of the Queen of the North," the provincial ferry company said in a statement on the 28-page report.

Ninety-nine people were rescued in the March 22, 2006, accident, which occurred in the middle of the night, but two passengers are missing and presumed dead.

A company panel said data from the ship's "black box" recording equipment conflicted with statements by a crewmember on the bridge that she made minor course changes and tried to turn off the autopilot at the last minute.

The two members of the bridge crew have refused to meet with the panel, made up of senior company officials and a union representative, but have talked to federal safety investigators who are preparing their own independent report.

The accident site is about 120 km (75 miles) south of Prince Rupert in British Columbia's Inside Passage -- a route along the rugged Canadian west coast that is traveled by thousands of cruise ship passengers each summer.

Ships following Queen of the North's southbound route from Prince Rupert to Vancouver Island normally make a course change to avoid the island hit by the ferry.

The crash tore a large gash in the ship's hull and it sank about an hour later. The ferry remains on the ocean floor not far from the crash site.

"Navigational aids and resources were available to the deck (navigational) watch to enable them to recognize the lack of a course change and to act in a manner to permit safe navigation and prevent the grounding," the panel wrote.

There was no evidence the ship attempted to change course, and Queen of the North hit the island while moving at 17.5 knots (32 km/h, 20 mph).

The panel's 31 recommendations in include revamping BC Ferries' watch system on some ships and improved training.

The ship's helmswoman said she could not turn off the autopilot because she did not know how, although the panel said they found that difficult to believe as it involved a single switch she would have needed to use routinely.

An investigation by the federal Transportation Safety Board is not expected to be released for several weeks.

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