Canary Islands - A ferry with 175 passengers on board ran aground on approaching the Spanish holiday island of Tenerife, shipping company Fred Olsen said Wednesday.

The passengers and crew were evacuated unharmed after the accident off the port of Los Cristianos on southern Tenerife in the Canary Islands late Tuesday.

MS Bonanza Express suffered fairly important damage, but was not in danger of sinking, Fred Olsen general director Juan Ramsden said.

The reason for the accident appeared to be linked to a failure of the ferry's reverse system, according to Ramsden.

The ferry leaked up to three tons of fuel. The presence of cars on board slowed down attempts to take it to a shipyard for repairs.

Bonanza Express shuttles between the Canary Islands of El Hierro, La Gomera and Tenerife. (dpa)